Basic accounting equation

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Basic accounting equation (or, simply, accounting equation; hereinafter, the byby) is Assets = Liabilities + Owner's equity; the same equation can be expressed as Owner's equity = Assets less Liabilities, etc. The double-entry method of bookkeeping is based on this equation.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Basic accounting equation. Assets = Liabilities + Owner's equity.

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