The Accounting Equation for Business

Understanding the accounting equation is very hard to comprehend for some, but in this episode you will learn about the most important accounting principle that is applied for all businesses. The Balance Sheet is all about being equal, it should be balanced and it is not possible that your Assets and Liabilities + Equity will outweigh each other. When you understand the accounting for your business, it will help you know your status as a business, whether you are having profit or loss, or whether you are tight with your cash flow or whether your business is solvent.Here are a few insights you’ll hear in today’s show…What is the accounting equation?Explanation of accounting terms and how the accounting equations are always equal to each other?What are Assets, Liabilities and Equity?What is Retained Earnings in relation to future use in the businesses?What is a Balance Sheet and why is it one of the important reports concerning a business?More examples of the accounting equationConnect to Annette Ferguson:Facebook - https://www.facebook.com/UKAnnetteFerguson/Instagram - https://www.instagram.com/annetteandco_/YouTube - https://www.youtube.com/channel/UCkohh_X-4R5mKfEW9rBQ1qAListen to the Podcast - Financial and Lifestyle Freedom for UK Business Owners -https://podcasts.apple.com/gb/podcast/financial-and-lifestyle-freedom-for-uk-business-owners/id1473582522