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Day: March 8, 2024

What are the liabilities in the Accounting Equation?
by Asim ArifAccounting

What are the liabilities in the Accounting Equation?

In the accounting equation, liabilities represent the obligations or debts that a company owes to external parties. Liabilities are crucial components of a company’s financial structure and are recorded on the balance sheet alongside assets and equity. The accounting equation, also known as the balance sheet

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What is Equity in the Accounting Equation?
by Asim ArifAccounting

What is Equity in the Accounting Equation?

In accounting, the equity of a business represents the residual interest in the entity’s assets after deducting liabilities. The accounting equation, also known as the balance sheet equation, illustrates this relationship: Assets=Liabilities+Equity Equity is often referred to as “owners’ equity” or “shareholders’ equity,” depending on the

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