Asked by Brittany Shackelford on Jul 04, 2024
Verified
Describe the elements of the balance sheet equation.
Balance Sheet Equation
The fundamental accounting equation representing the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).
- Comprehend the structure and elements of the balance sheet equation.
Verified Answer
YW
yonatan wogayehuJul 10, 2024
Final Answer :
The balance sheet equation states that assets equal liabilities plus stockholders' equity.Assets are a firm's economic resources such as cash,supplies,inventory,and equipment.Liabilities are a firm's debts such as accounts payable and notes payable.Stockholders' equity consists of common stock and retained earnings.
Learning Objectives
- Comprehend the structure and elements of the balance sheet equation.
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