Reference no: EM131526274
Question: The accounting equation is:
Assets = Liabilities + Stockholders' Equity
Therefore, if assets are $20,000 and liabilities are $12,000, stockholders' equity is $8,000, as indicated in the following computation:
Assets = Liabilities + Stockholders' Equity
+ $20,000 = +$12,000 + Stockholders' Equity
+ $20,000 - $12,000 = Stockholders' Equity
+ $8,000 = Stockholders' Equity
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