ACCOUNTING EQUATION Definition

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ACCOUNTING EQUATION is a mathematical expression used to describe the relationship between the assets, liabilities and owners equity of the business model. The basic accounting equation states that assets equal liabilities and owners equity, but can be modified by operations applied to both sides of the equation, e.g., assets minus liabilities equal owners equity.

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GARNISH is to take a debtors wages under a legal order, e.g. for child support or an IRS tax liability.

UNDISTRIBUTED EARNINGS see RETAINED EARNINGS.

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