what is the balance sheet formula 
in accounting the footing is the final balance obtained by adding all the debits and credits a balance sheet an important financial tool calculates a company s assets with its liabilities and equity total assets are calculated as the sum of all short term long term and other assets total liabilities are calculated as the sum of all short term long term and other liabilities total equity is calculated as the sum of net income retained earnings owner contributions and shares of stock issued the formula is total assets total liabilities total equity 