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Assets
An asset is something (a resource) that the company currently owns and uses to get the business functioning.
Liabilities
A liability is an obligation that a business has towards an external entity, based on a previous transaction. That is, a liability is a debt or an obligation that a company has towards a person or another business. (In some cases or scenarios, the work liability seems to (always) have a pejorative meaning, not in accounting. Therefore, do not consider the concept or idea of liability as negative or as having negative effects. In fact, without liabilities, which are largely based on promises (that must be kept), it is hard to think of how businesses could function). There are various scenarios in which liabilities apply.
Owner's Equity
Introduction
The owner's equity is the difference between what the business owns and what it owes. Put it another way, the assets are the total of the liabilities and the owner's equity. This can be mathematically expressed as follows:
Assets = Liabilities + Owner's Equity
or
A = L + OE
As you can imagine, the owner's equity can be a measure by which a company has or does not have the needed resources for an effective conduct of its business. To express the relativity of this measure, we say that the owner's equity increases or decreases.
By: Loyd Liao
What else can I help you with?
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A.asset B.liability C.capital
3 basic accounting elements?
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Give the 3 basic of accounting elements?
assets, liabilities, and owners equity
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1. Assets 2. Liabilities 3. Owners or Shareholder Equity
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Accounting Theory is defined as the study of methodologies and financial accounting principles. The Accounting Theory is continuously-evolving and changing.
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the ability to identify the Assets of the company , as well as the Liabilities , placing each items will allow
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personal accounting nominal accounting real accounting
3 important activities in accounting process?
real accounting, nominal accounting,personal accounting
What is the 3 golden rules of?
personal accounting nominal accounting real accounting
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1 - Cost accounting 2 - Financial accounting 3 - Management accounting
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1. Financial Accounting 2. Cost Accounting 3. Management Accounting 4. Social Accounting 5. Human Resource Accounting 6. National Accounting
