Accounting Equation: Why notAssets = Equity - Liabilities?

by Anonymous

Q: Why don't they say assets = equity - liabilities instead of + liabilities?

A:
Your answer lies in the definitions of each of the three elements (parts) of this equation. See the respective lessons on the accounting equation and on each of these elements of accounting in the section Basic Accounting Concepts.

Comments for Accounting Equation: Why notAssets = Equity - Liabilities?

 ASSETS = EQUITY + LIABILITIES by: Anonymous Assets is made up of equity and liabilities.

 Negative by: Anonymous I think if you borrow money from the bank, it's on your hand so it becomes your asset. However, you still owe it so it is on the other side of the equation as an amount you owe.

 Liabilities are already negative by: Anonymous Liabilities are already negative. If in an algebra formula you subtracted a negative it has the effect of adding it.

 Assets = Equity plus Liability by: Anonymous Because Assets is made by Equity plus Liability