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Kailee Has Learned the Word "Kitty," but She Uses This

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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 ​


Definitions:

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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