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

Question

Quizplus · Accepted Answer

The left side of the accounting equation represents the assets of the business, which can be either owned by the business or owed to third parties. The right side represents the sources of funds used to acquire those assets, which can be either liabilities owed to creditors or equity owned by the owner.

The Left Side of the Accounting Equation Measures the Amount