Learning Unit 1 Chapter 1

Tim Frees, MBA, CFEInstructor

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The resources

owned by a

business

Assets = Liabilities + Owner’s Equity

LO 3

Assets = Liabilities + Owner’s Equity

LO 3

The rights of

creditors are the

debts of the

business

The rights of the

owners

Assets = Liabilities + Owner’s Equity

LO 3

The resources owned by a business are its assets.

The rights of creditors are the debts of the business and are called liabilities.

The rights of the owners are called owner’s equity.

The equation Assets = Liabilities + Owner’s Equity is called the accounting equation.

LO 3