The excess of assets over liabilities is
The obligations of the business to creditors are called
When an expense is paid, the amounts of two items in the accounting equation are reduced. These are
Increase in one asset either reduces another asset or increases a
Decrease in one asset either increases
or decreases a liability.
In accounting equation, the discount received is
to owner's equity.
Assets - Owner's equity =
= Liabilities + Owner's equity.
Owner's equity/capital is the obligation of the business to its
The owner takes some cash from the business for his personal use. The affected items of the accounting equation are
If total assets are $75,000 and total liabilities are $25,000, the amount of owner's equity is