Why must accounting equation always balance


Assignment : The Accounting Equation

The accounting equation is assets = liabilities + owner's equity.

Explain the relationship between economic resources and claims to economic resources.

Why must this equation always balance?

What transactions increase or decrease owner's equity?

How does net income or loss affect owner's equity?

Provide an example of a transaction, applied to the accounting equation.

Be sure to cite any sources using APA style

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Accounting Basics: Why must accounting equation always balance
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