Explain total assets equal the sum of total liabilities, Financial Management

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Why do total assets equal the sum of total liabilities and equity? Explain.

Assets = Liabilities + Equity

Assets are the items of value that a business owns. Liabilities are claims on the business through non-owners, and equity is the owners' claim on the business. The sum of the equity and liabilities is the total capital contributed to the business that by definition equals the total value of the assets.

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