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Definition of

accounting equation


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"

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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