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What this accounting equation includes: Revenues are the sales or other positive cash inflow that come into your company. Expenses are the costs The accounting equation is a fundamental concept that states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity.
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The basic accounting formula forms the logical basis for double entry accounting. It states that the assets listed on an The Accounting Equation and Analyzing Business Transactions What is Accounting? The Basic Accounting Equation
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