<p>The accounting equation is&nbsp;<span class="math math-inline"><span class="katex"><span class="katex-mathml">Assets=Liabilities+Equity</span><span class="katex-html"><span class="base"><span class="mord text"><span class="mord">Assets</span></span><span class="mrel">=</span></span><span class="base"><span class="mord text"><span class="mord">Liabilities</span></span><span class="mbin">+</span></span><span class="base"><span class="mord text"><span class="mord">Equity</span></span></span></span></span></span>. 1</p>