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Solve the equation. Watch for extraneous solutions.
Equity
The remaining stake in a company's assets once liabilities are subtracted, signifying the equity held by shareholders.
Accounting Equation
A fundamental financial principle represented as Assets = Liabilities + Owners' Equity, showing the relationship between a company's resources and its sources of financing.
Transactions
Financial activities or events that affect the financial position of a business, such as buying, selling, or transferring assets.
Sole Stockholder
An individual or entity that owns 100% of the outstanding shares of a corporation.
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