GeneralLedgerGuide > General Ledger > A General Introduction to General Ledger > Basic Accounting Principles > Different Accounting Styles > The Accounting Equation
The Accounting Equation
The account types tell the software how to handle the account within the accounting equation. The accounting equation is an accounting representation of the business. This equation is used to generate the balance sheet for a business.
ASSETS =
Liabilities +
Equity
Asset
Liability
Equity
Contra-Asset
Contra-Liability
Contra-Equity
Published date: 10/23/2019