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on Nov 15, 2024Verified
The accounting equation may be expressed as
A) Assets = Shareholders' Equity - Liabilities.
B) Assets = Liabilities + Shareholders' Equity.
C) Assets + Liabilities = Shareholders' Equity.
D) Assets + Shareholders' Equity = Liabilities.
Shareholders' Equity
The residual interest in the assets of a company after deducting liabilities, representing ownership interest.
Liabilities
Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of assets, provision of services, or other economic benefits.
Assets
Economic resources owned or controlled by a business or an individual, capable of producing value and used to generate income or meet obligations.
- Understand the components and structure of the accounting equation.
Verified Answer
PH
Learning Objectives
- Understand the components and structure of the accounting equation.