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Question
Accounting equation signifies ___________.
Options
Capital of a business is equal to assets
Liabilities of a business are equal to assets
Capital of a business is equal to liabilities
Assets of a business are equal to the total of capital and liabilities
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Solution
Accounting equation signifies Assets of a business are equal to the total of capital and liabilities.
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What will be the effect of the following on the accounting equation?
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