ACCOUNTING EQUATION
It is the equation which is the foundation of a double entry accounting. It only says that assets are either financed or borrowed money or paid with the company’s money shareholders. The accounting equation is like this: Assets is equals to Liabilities plus Shareholder Equity. The accounting equation is also written alike this: Liabilities is equals to Assets subtract Shareholder Equity and Shareholder Equity is equals to Assets minus Liabilities.
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