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Strohner and Nelson (1974) had 2- and 3-year-olds use toys to act out the following sentences: (1) The cat chased the mouse.
(2) The mouse chased the cat.
How were these sentences interpreted?
Debts
Money that is owed or due to another individual or entity.
Assets
Assets are resources owned by a business or individual that have economic value and can bring about future benefits, such as cash, real estate, and machinery.
Liabilities
Financial obligations or debts of a business that arise during the course of its operations, required to be settled over time.
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities, representing the capital owned by the shareholders or owner.
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