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Accounting Equation
The fundamental equation of double-entry bookkeeping, reflecting that assets equal liabilities plus owner's equity.
Owner's Equity
Owner's equity represents the owner's stakes or claims against the assets of a business, equal to the total assets minus total liabilities.
Liabilities
Financial obligations or debts that a business or individual owes to others, which are expected to be settled over time through the transfer of economic benefits like cash or goods.
Assets
Resources owned or controlled by a business that are expected to benefit future operations.
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