Chapter 3 - Review the Facts A. Assets are the probable...

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Review the Facts A. Assets are the probable future economic benefits obtained or controlled by an entity as a result of past transactions or events; things of value owned by a company. Liabilities are probable future sacrifices of economic benefits arising from present obligations of the entity to transfer assets or provide services in the future as a result of past transactions or events. Equity is the residual interest in the assets of an entity that remains after deducting its liabilities. Equity is also called net assets, owners’ equity, or net worth. B. The two sources of equity are the investments by owners which result from transfers from other entities of something valuable and earned equity which is the total amount the entity has earned since its inception reduced by any distributions to owners. C. Assets = Liabilities + Owners’ Equity D. The balance sheet is also referred to as the Statement of Financial Condition or the Statement of Financial Position. E.
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This note was uploaded on 09/16/2011 for the course ACCT 2113 taught by Professor Staff during the Fall '11 term at University of Central Oklahoma.

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Chapter 3 - Review the Facts A. Assets are the probable...

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