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Explanation of accounting equation

User Diabloneo
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Answer:

Calculating the Equation

The balance sheet holds the basis of the accounting equation:

Locate the company's total assets on the balance sheet for the period.

Total all liabilities, which should be a separate listing on the balance sheet.

Locate total shareholder's equity and add the number to total liabilities.

Total assets will equal the sum of liabilities and total equity.

Step-by-step explanation:

User Mlaribi
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