Liability and Assets
What are Liability and Assets in Accounting equation. Also describe it with the help of formula.
Expert
Liability and Assets are the two portions of accounting equation. Liability is always equivalent to assets of company. The liability is payable amount to owner and exterior. In case whenever businessman has not taken any loan, all liability will be equivalent to the capital of that businessman. In second condition whenever a company has not taken any loan, each and every share capital will be the liability of business.
Total liability = Owner's equity + outside equity
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