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Home > QFINANCE Dictionary > Definition of accounting equation

Definition of

accounting equation

Accounting

formula relating assets, liabilities, and equity a formula in which a firm's assets must be equal to the sum of its liabilities and the owners' equity.

Related definitions of "accounting equation"

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Definitions of ’accounting equation’ and meaning of ’accounting equation’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’accounting equation’ and other financial terms with our online QFINANCE Financial Dictionary.

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