Answer:
What the accounting equation tells us is that everything that a firm owns, it acutally either owes it to the owners of the firm, or to creditors.
Explanation:
This is why the accounting equation is represented as:
Assets = Liabilities + Stockholders' Equity
Where Assets represent what the firm owns, liabilities is what the firm owes to creditors, and Stockholders' Equity (or Owners' Equity) is what the firm owes to the owners.
