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Liabilities include cash that the organization owes to maintain it operational. Overhead and operational expenditures, rents, taxes and salaries are all Element of the liabilities in a business, in addition to payable dividends.

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Considering that the accounting equation kinds the base for double-entry accounting, it may depict a posh composition within the stability sheet. The harmony sheet can element various merchandise that need to be accounted To guage full belongings and liabilities of the company.

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