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Report of Condition
The Balance Sheet of a Bank Showing its Assets, Liabilities andNet Worth
Accounting Equation: Assets=Liabilities +Equity Capital (1)
Accounting System: What a company owns and what it owes Assets= Resources with future benefits that areowned and controlled by a companyExamples: cash, supplies, equipment and landLiabilities= What a company owes to its nonowners(creditors)Examples: debt to a bank in the form of a notepayable, accounts payable to suppliesEquity
= owner’s claim on assets (Owner’s equity)