equity Equation:
The equity equation, which actually is not an equation but an equal, since there is no mystery, essential budget equations, and is with the heading Method double, the pillars of the current accounting.
The equity equation is based on the double entry method, which allows a balance to the extent that it is due, and is in the equity equation which understands the importance and essence of the double entry .
In principle, the equation indicates that the active equity equals wealth, but when the liability arises equation becomes assets = liabilities + equity.
The equation has three variables or elements that are explained below:
Active. The assets and rights of the company
Liabilities. The company's debts with third parties. The debts of the company with partners
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