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A pictorial presentation of a balance sheet showing assets of £50,000, liabilities of £30,000 and equity of £20,000.

The nature of equity

Of the five financial statement elements, equity is the most mercurial. In part, because it’s a function of recognised assets less recognised liabilities, simply expressed in this form of the accounting equation. Assets – Liabilities = Equity (net… Continue reading The nature of equity


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