The Accounting Equation is the foundation on which the Double Entry Bookkeeping System is built.

The Fully Expanded Accounting Equation includes assets, liabilities, beginning equity, owner's investments, revenues, expenses, and draws (dividends).

Expenses increase Owner's Equity.

Revenues increase Owner's Equity.

You can calculate Assets if Liabilities and Owner's Equity are known.

You can calculate Owner's Equity if Assets and Revenues are known.

A common expression of the Accounting Equation is Assets=Owner's Equity-Liabilities.

The Abbreviated Version of the Accounting Equation is Property=Property Rights (Claims To Property).