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welcome to contacts in this lesson we are going to be looking at the accounting equation none of our previous lessons we looked at what the accounting equation is and explained how it works and how it effects assets equity and liabilities so it was just a brief explanation but in this lesson we are going to be looking at various examples on how to do the accounting equation and exactly how the accounting equation works this is where well look at all the accounts that affect the balance sheet and establishing how each transaction relates to the balance sheet remember the balance sheet is assets in quitting and liabilities that is exactly what the accounting equation looks at and you will see what the number would with the help of a three examples this is a great foundation and explanation of the double-entry accounting system so if you do not understand the accounting how the double-entry accounting system works or youd like to understand more the accounting equation will be a great