Fill This Form To Receive Instant Help
Homework answers / question archive / What must retain earnings equal in order for the accounting equation to balance?
What must retain earnings equal in order for the accounting equation to balance?
The accounting equation prescribes that total assets should always be equal to the sum of liabilities and equity. There is no case that the total amounts of the accounts mentioned are not balance. This is also supported by the accounting concept that total debits shall always equal to total debits.