Examlex
Which of the following changes is NOT correctly labeled as a chemical reaction or a change of state?
Accounting Equation
The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, representing a company's financial position.
Assets
Resources owned by a business or individual that are expected to provide future economic benefits.
Liabilities
Liabilities are financial obligations or debts that an entity owes to external parties, expected to be settled over time through the transfer of economic benefits.
Owner's Equity
The residual interest in the assets of a business after all liabilities are subtracted, representing ownership's claim on assets.
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