Examlex
Identify the following terms.
-Monte Albán
Accounting Equation
The accounting equation is a fundamental principle of accounting that states that assets equal liabilities plus equity; it forms the basis for double-entry bookkeeping.
Owners' Equity
Represents the amount of capital that the owners or shareholders have in the company after deducting liabilities from assets.
Assets
Resources owned by a business or individual, considered valuable because they can be used to produce goods, services, or generate revenue.
Liabilities
Refers to the financial obligations a company owes to outside parties, including debts, loans, and other forms of financial responsibilities.
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