The Accounting Equation: Assets = Liabilities + Owners' Equity

This lecture covers the fundamental concept of the accounting equation, where assets are equal to the sum of liabilities and owners' equity. It explains the balance sheet, fixed and current assets, long-term and current liabilities, owners' equity, net income, and the income statement. Through examples of JJ's Lawn Care Service transactions, it illustrates how financial statements are prepared and how the accounting equation is applied in real-life scenarios.