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Wharton's Rule requires
Assets
Resources owned by a business that are expected to provide future economic benefits.
Liabilities
Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.
Internal Transactions
financial events that affect the internal accounting of an organization without involving another entity.
External Transactions
Financial activities involving an entity and another party outside the entity, such as sales, purchases, and financing agreements.
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