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Owner's Equity
The residual interest in the assets of a business after deducting liabilities; represents the owner's claim on the business assets.
Liabilities
Financial obligations a company owes to outside parties.
Assets
Resources owned or controlled by a business, which are expected to produce future economic benefits.
Accounting Equation
The fundamental principle of accounting that states Assets = Liabilities + Equity, which must always be in balance for accurate financial reporting.
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