Examlex
Simplify the expression.
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Liability Account
A liability account records debts or obligations a company owes to others, appearing on the balance sheet.
Owner's Equity Account
An account on a company's balance sheet representing the owner's total interest in the business, after subtracting liabilities from assets.
Transaction
An agreement or communication carried out between two or more parties that results in the exchange of goods, services, or money.
Credits
Credits refer to a bookkeeping entry that increases a liability or equity account, or reduces an asset or expense account, reflecting the opposite side of a debit.
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