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Annette Perez
on Nov 09, 2024

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The accounting equation Assets = Liabilities + Equity is illustrated by the profit-and-loss financial statement.

Accounting Equation

A fundamental principle of accounting that states assets equal liabilities plus owners' equity, representing the financial position of a business.

Profit-And-Loss Financial Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year, indicating the company’s profit or loss.

  • Distinguish between assets, liabilities, and equity within the context of the accounting equation.
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Yamini InchunkarNov 11, 2024
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