On the balance sheet, total assets must always equal the sum of total liabilities plus equity.

Name: On the balance sheet, total assets must always equal the sum of total liabilities plus equity.
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This is the fundamental accounting equation, also known as the balance sheet equation. It is based on the principle that every financial transaction has two sides, both of which must be accounted for in order for the books to remain in balance.

On the Balance Sheet, Total Assets Must Always Equal the Sum