What is the accounting equation? Briefly explain each of the

What is the accounting equation? Briefly explain each of the three parts.

What will be an ideal response

ANSWER

Assets = Liabilities + Equity.
Assets are economic resources that are expected to benefit the business in the future. They are things of value that a business owns or has control of. Liabilities are debts that are owed to creditors. They are one source of claims against assets. Equity is the other source of claims against assets. Equity is the stockholders’ claims against assets and is the amount of assets that is left over after the company has paid its liabilities. It represents the net worth of the corporation.