Asked by Shayle Lliaban on May 21, 2024
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The accounting equation states that Assets = Liabilities + Stockholders' Equity.
Stockholders' Equity
The portion of a company's capital that belongs to the shareholders, calculated as the difference between total assets and total liabilities.
Liabilities
Obligations owed by a company to parties external to the business, which must be settled over time through the transfer of economic benefits including money, goods, or services.
Assets
Resources owned by a company that have economic value and can provide future benefits, including cash, property, and equipment.
- Understand the basic accounting equation and its components.
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Learning Objectives
- Understand the basic accounting equation and its components.
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