WHAT YOU WILL LEARN:

We'll go over the definition of equity and how it relates to assets and liabilities. Using an example, we'll see how equity changes based on the number of owners or asset price fluctuations.

HOW IT WILL APPLY LATER ON:

Many students breeze through this fundamental accounting element without fully understanding it, which normally leads to errors later in the course.

This tutorial will prepare you for:

• Journal entries involving equity accounts
• The Statement of Changes in Equity