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5:13
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Professor Sabine D'Amico, CPA, CMA, MBA, CSSMBB
The Accounting Equation explained
The accounting equation shows the relationship between everything a business owns (its assets), everything it owes (its liabilities), and the owner's interest in the business. Assets equal liabilities plus equity. This equation is the foundation of double-entry bookkeeping because every accounting transaction affects at least two accounts with ...
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