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Describe the triple constraint. What are the three components and what is the relationship between them?
Accruals
Accounting adjustments for revenues that have been earned but not yet recorded, and expenses that have been incurred but not yet recorded.
Explicit Interest
The interest rate stated in a contract or agreement, not including any compounding interest or hidden fees.
Capital
Financial assets or the value of financial assets used for the creation of goods or services or for investing.
Pledging
The act of providing an asset as security or collateral for a loan, ensuring the lender can claim the asset if the loan is not repaid.
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