A = L+E?

Can someone BRIEFLY explain to me why assets HAVE TO equal liabilities plus equity. This seems to me like some convaluted equation created by academics to confuse the masses.

Not sure if trolling? Two ways to get assets either pony up your self or get a loan, how else you gonna get them?

Assets are stuffs you use to generate income. You can get or grow the assets by borrowing/pending payments (liability) or your own money (equity which is capital injected plus income you dont take out alias retained earnings).

The balance sheet equation has been the basis of accounting since Pacioli first developed the double entry system in the 15th century. You might as well question Einstein or Newton. Just as an aside, I take it you were not an accounting major?

I think this must be meant for the Level I forum, or perhaps a Claritas forum.