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Why do total assets equal the sum of total liabilities and equity?Explain.
Assets = Liabilities + Equity
Assets are the entities of value a business owns. Liabilities are liable claims on the business by non-owners and equities are the owners' claim on the business. The sum of the equity and liabilities is the total capital contributed to the business which by definition equals the total value of the assets.
Demerits of Pay Back Method:- (i) It ignores the Cash Flows after the Pay Back Period: - The main shortcoming of this method is that it completely ignores all cash inflows subs
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