Examlex
Take incremental steps and measure value because
Basic Accounting Equation
The fundamental formula in accounting that states that Assets = Liabilities + Equity.
Liabilities
Financial obligations or debts owed by a business to another entity, which are expected to be settled through the transfer of economic benefits like cash or goods.
Owners' Equity
The residual interest in the assets of an entity after deducting liabilities, representing the owners' share in the company.
Gaap
Generally Accepted Accounting Principles are the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly the U.S.
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