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Accounting Equation Explained
ContentWhat is the goal of an accounting equation?Introduction to the Accounting EquationLimits of the Accounting EquationWhy is the Accounting Equation Important?What Are the 3 Elements of the Accounting Equation?Call Us Here at Protea Financial to Learn More About the Accounting EquationAssets = Liabilities + Equity For example, if Shanti does not have sufficient cash to pay for the laptop, she may have the electronics store charge her credit card for the purchase. In that case, the credit card company pays the store, and Shanti’s business now owes the credit card company for the amount of purchase . Are items—such as equipment, cash, supplies, inventory, receivables, buildings, and vehicles—that a business owns and derives future use from. Potential investors want to know what...