The accounting equation is defined as:

Name: The accounting equation is defined as:
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The accounting equation is a fundamental principle of accounting and represents the relationship between a company's assets, liabilities, and stockholders' equity. It can be expressed as: Assets = Liabilities + Stockholders' Equity. This equation forms the basis of double-entry accounting, where every transaction has an equal and opposite effect on the company's assets and liabilities.

The Accounting Equation Is Defined As