The Difference Between A Company's Assets And Its Liabilities is What?




The Difference Between Assets And Liabilities Is CalledThe difference between a company's Assets and its Liabilities is Equity or Owner’s Equity according to Accounting Equation:


Assets = Liabilities + Equity


Assets - Liabilities = Equity






This accounting equation is the basis of Double Entry System that all of the resources (Assets) must be equal to the Rights of Outsiders (External Liabilities) and Rights of Owners of the business (Internal Liabilities or Equity).




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