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Does Capital equals assets plus liabilities is this true or false?
Wiki User
∙ 13y ago
This would be False:
The GAAP account equation is Assets = Liabilities + Owners Equity (which includes capital)
Therefore the correct equation would be:
Assets - Liabilities = Owners Equity (minus not plus)
There is no accounting equation that allows to adding assets and liabilities.
Wiki User
∙ 13y ago
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