In this video, we break down the essential accounting equation: Assets = Liabilities + Equity. Using a fictional company, East Mangoes, as a case study, we simplify each component: assets (valuable resources), liabilities (future obligations), and equity (financing from shareholders). We discuss real-world examples, such as inventory, accounts payable, and shareholder contributions, to help you understand the balancing act of financial accounting. This foundational concept ensures that every business transaction is properly recorded and remains balanced.