The right side of the accounting equation measures the amount that the business owes to creditors and to the owner.

Name: The right side of the accounting equation measures the amount that the business owes to creditors and to the owner.
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Question

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The right side of the accounting equation (Liabilities + Owner's Equity) represents the claims against the company's assets, which include what the business owes to creditors (liabilities) and the owner's claim (equity).

The Right Side of the Accounting Equation Measures the Amount