On the balance sheet,total assets must always equal the sum of total liabilities and equity.

Name: On the balance sheet,total assets must always equal the sum of total liabilities and equity.
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This is the fundamental principle of accounting known as the accounting equation or balance sheet equation. It states that the assets of a company must always equal the sum of its liabilities and equity. This ensures that the financial records of a company are accurate and balanced.

On the Balance Sheet,total Assets Must Always Equal the Sum