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What's the meaning of Accounting equation?

帮考网校2020-10-12 15:34:32
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The accounting equation is a fundamental principle of accounting that states that assets must always equal the sum of liabilities and equity. It is expressed as:

Assets = Liabilities + Equity

This equation is used to ensure that a company's financial statements are accurate and balanced. It is also used to analyze a company's financial health by examining its assets, liabilities, and equity.
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