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Accounting Equation (Topic Outline)


Topic Outline

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Read our Explanation (11 Parts) Free

Our Explanation of Accounting Equation (or bookkeeping equation) illustrates how the double-entry system keeps the accounting equation in balance. You will see how the revenues and expenses on the income statement are connected to the stockholders' equity on the balance sheet.

Part 1Introduction to the Accounting Equation
Part 2Accounting Equation for a Sole Proprietorship: Transactions 1–2
Part 3Accounting Equation for a Sole Proprietorship: Transactions 3–4
Part 4Accounting Equation for a Sole Proprietorship: Transactions 5–6
Part 5Accounting Equation for a Sole Proprietorship: Transactions 7–8
Part 6Calculating a Missing Amount within Owner's Equity
Part 7Accounting Equation for a Corporation: Transactions C1–C2
Part 8Accounting Equation for a Corporation: Transactions C3–C4
Part 9Accounting Equation for a Corporation: Transactions C5–C6
Part 10Accounting Equation for a Corporation: Transactions C7–C8
Part 11Expanded Accounting Equation for a Sole Proprietorship, Expanded Accounting Equation for a Corporation
Take our Practice Quiz Free

This 20-question quiz is a fast way to assess your understanding of the Accounting Equation Explanation.

Review our Visual Tutorial

Our visual tutorial for the topic Accounting Equation shows how the double-entry system keeps the accounting equation in balance. It also lets you see the connection between the income statement and the balance sheet.

Review our Q&A Free

We've answered 65 popular questions related to the topic Accounting Equation. Review them all or use the search box found at the top of each page of our website for your specific questions.

Review our Flashcards

Our flashcards for the topic Accounting Equation will help you master key terms and definitions. You can view them on any device or print them out.

Solve our Crossword Puzzle Free

We created this crossword puzzle for you to learn, review, and retain terminology for the topic Accounting Equation in a more fun format.

Review our Cheat Sheet

Our Accounting Equation Cheat Sheet provides eight transactions to illustrate why and how the accounting equation remains in balance.

Take our Quick Test

This graded 30-question test measures your understanding of the topic Accounting Equation. Discover which concepts you need to study further and enhance your long-term retention. All of our quick tests can be taken online and/or printed.

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Certificate - Debits and Credits
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Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
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Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

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Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
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