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Investopedia defines the elemental accounting equation as the foundation on the double-entry accounting process. This displays the organization's balance sheet applying the corporate's assets or maybe the sum of liabilities and cash/ shareholder's go fairness.
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This signifies all the money which the shareholders will receive in the event the corporation liquidates its assets soon after paying off all the organization debts. Funds and shareholder’s fairness are, occasionally, utilized alternatively.
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