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on Nov 15, 2024

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The accounting equation may be expressed as

A) Assets = Shareholders' Equity - Liabilities.
B) Assets = Liabilities + Shareholders' Equity.
C) Assets + Liabilities = Shareholders' Equity.
D) Assets + Shareholders' Equity = Liabilities.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing ownership interest.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of assets, provision of services, or other economic benefits.

Assets

Economic resources owned or controlled by a business or an individual, capable of producing value and used to generate income or meet obligations.

  • Understand the components and structure of the accounting equation.
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Peculiar HorsfallNov 16, 2024
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