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Why do total assets equal the sum of total liabilities and equity? Explain.
Assets = Liabilities + Equity
Assets are the items of value that a business owns. Liabilities are claims on the business through non-owners, and equity is the owners' claim on the business. The sum of the equity and liabilities is the total capital contributed to the business that by definition equals the total value of the assets.
The Rise of Derivative Market: In the 1980s, the process of liberalization and deregulation of the financial markets gained momentum when the British and American leadership l
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