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Accounting Equation
A fundamental principle in finance representing the relationship: Assets = Liabilities + Equity.
Assets
Resources owned or controlled by a company, expected to produce future economic benefits.
Equity
The value of an ownership interest in property, including shareholders' equity in a business.
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.
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