Examlex
Kailee has learned the word "kitty," but she uses this word when she is referring to cats, bunnies, squirrels, and other small furry animals. Kailee's use of this word illustrates
Accounting Equation
The fundamental formula representing the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).
Asset
An economic resource owned or controlled by an individual or business, expected to provide future benefits.
Liability
Any financial debt or obligation that a company owes, which must be settled over time through the transfer of economic benefits including money, goods, or services.
Owner's Equity
The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.
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