The accounting equation shows that a company's resources equal creditors' and owners' claims to those resources.

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The accounting equation is Assets = Liabilities + Equity. This means that a company's resources (assets) are either financed by creditors' claims (liabilities) or owners' claims (equity). Therefore, the accounting equation shows that a company's resources equal creditors' and owners' claims to those resources.

The Accounting Equation Shows That a Company's Resources Equal Creditors