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How does the accounting equation work, and what are some examples of using equation. Assets equal liabilities plus capital or owner's equity. Many students in introductory accounting struggle with questions that test their knowledge of the expanded equation.
Solution of practical problem on accounting equationhi, i am ved bangia. This problem works through the idea that assets = liabilities + owner's equity, using basic transactions related to a new business. Watch this video, basic accounting equation lecture.
#accounting states that assets always equal.