What is the accounting equation?

```
Assets = Equity + Liabilities
```

It must hold at every point in time. If your balance sheet doesn't balance, you have an error in the model.

Every dollar on the asset side must be funded — either by owners (equity) or by third parties (debt, payables, provisions).

Check: total assets − total liabilities and equity = exactly 0, every period. The most common junior mistake.