accounting equation


Definition of accounting equation

1 : the equality of debits and credits as used in the double-entry system
2 : a statement of net worth as equal to assets minus liabilities

Love words?

You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

Start your free trial today and get unlimited access to America's largest dictionary, with:

  • More than 250,000 words that aren't in our free dictionary
  • Expanded definitions, etymologies, and usage notes
  • Advanced search features
  • Ad free!

First Known Use of accounting equation

1911, in the meaning defined at sense 1

Keep scrolling for more

Learn More about accounting equation

Time Traveler for accounting equation

Time Traveler

The first known use of accounting equation was in 1911

See more words from the same year

Statistics for accounting equation

Cite this Entry

“Accounting equation.” The Dictionary, Merriam-Webster Inc., Accessed 16 December 2019.

Comments on accounting equation

What made you want to look up accounting equation? Please tell us where you read or heard it (including the quote, if possible).


having a smooth flowing sound

Get Word of the Day daily email!

Test Your Vocabulary

Great Scrabble Words—A Quiz

  • scrabble tiles that read scrabble quiz
  • Which of the following Q-without-U words means the number five in cards or dice?
Spell It

Can you spell these 10 commonly misspelled words?


Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!