The accounting equation must balance before and after every accounting transaction.

Name: The accounting equation must balance before and after every accounting transaction.
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The accounting equation, Assets = Liabilities + Owner's Equity, must always balance before and after any accounting transaction. This means that the total value of assets must be equal to the total value of liabilities and owner's equity. If the equation does not balance, then there is an error in the accounting records.

The Accounting Equation Must Balance Before and After Every Accounting