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Hey guys, Im James and welcome to the very first episode of Accounting Stuff. In this video Im going to talk through one of the most important principles of accounting, explain what it means, and run through how it is used. This episode is all about the Accounting Equation and is going to be part of a playlist that Im creating on Accounting Basics. I will add links to the rest of the videos in the series to the description below. So, why the Accounting Equation? This equation lies at the heart of accounting and is the foundation of the double-entry accounting system. I hope you find it informative. Lets do this! The key principle behind the accounting equation is that Stuff the Business Owns is equal to the Stuff that the Business Owes, and it is vitally important that you remember that this equation balances. Always, always, always! Now lets say I come up with this amazing idea for a business. I want to make popcorn and sell it Ive got five dollars in my pocket, and I decide to
