the sum of capital introduced liabilies is equal to
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As per accounting assets of a business always equal the sum of its capital and liabilities. The accounting equation depicts the fundamental relationship that exists among the components of the balance sheet, it is also referred to as the Balance Sheet Equation.
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The accounting equation, Assets = Liabilities + Capital means that the total assets of the business are always equal to the total liabilities plus the owners equity of the business. This is true at any time and applies to each transaction.
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