APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

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Accounting equation

Assets = Capital + Liabilities. The value of assets should always equal capital and liabilities. This is because the money used to purchase an asset has to come from somewhere – either through owner’s capital, ie money put into or kept in the business by the owner(s), or borrowed from others, ie liabilities.

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