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You are waiting at the crosswalk for the light to change. Finally the "WALK" sign illuminates and you begin to cross the street. Even though you watch for traffic as you cross, you have learned that the appearance of this light usually means that it is safe to cross the street. Thus, the "WALK" sign would be considered an example of a
Accounting Equation
Represents the foundational principle of double-entry bookkeeping, stating that assets equal liabilities plus equity, serving as the basis for all accounting systems.
Liabilities
Financial obligations or debts that a company owes to others, which are recorded on the right side of the balance sheet.
Equity
Equity represents an owner's share in the assets of a company, after all liabilities have been subtracted.
Accounts Receivable
The balance of money owed to a company by its customers for goods or services delivered or used but not yet paid for.
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