The left side of the accounting equation must always equal the right side of the equation.

Name: The left side of the accounting equation must always equal the right side of the equation.
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Question

Quizplus · Accepted Answer

This is the fundamental principle of accounting and is known as the equation of balancing. It states that the total assets of a business must always equal the sum of its liabilities and equity. This principle ensures that the financial statements are accurate and reliable.

The Left Side of the Accounting Equation Must Always Equal