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.
