Balance equation. What is the primary accounting equation that describes the balance sheet of a not-for-profit, business-oriented health care entity? Solution The primary accounting equation that describes the balance sheet of a not-for-profit, business- oriented health care entity is given below: Assets = Liabilities + Net Assets (answer) where Net Assets = Total Assets - Total Liabilities Total assets of a not-for-profit organization are segregated into 3 major categories: Unrestricted net assets, temporarily and permanently restricted net assets. Liabilities include both current and long term liabilities..