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FOUNDATION
BASIC EDUCATION DEPARTMENT
THE ACCOUNTING
EQUATION
Prepared by:
Gerald L. Diadid
ABM Teacher
OBJECTIVES
Left side:
Assets
BASIC ACCOUNTING EQUATION
Assets = Liabilities + Owner’s Equity
When a business is put up, its resources (assets) come from two
sources: contributions by owners (capital) and those acquired from
creditors or lenders (liabilities).