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Why do total assets equal the sum of total liabilities and equity?Explain.
Assets = Liabilities + Equity
Assets are the entities of value a business owns. Liabilities are liable claims on the business by non-owners and equities are the owners' claim on the business. The sum of the equity and liabilities is the total capital contributed to the business which by definition equals the total value of the assets.
FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN
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When financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds from these underlying assets, they are termed as asset
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