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Considering that the accounting equation kinds The bottom for double-entry accounting, it may stand for a fancy construction over the stability sheet. The stability sheet can characteristic various items that have to be accounted To guage total assets and liabilities of the company.

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Liabilities include revenue that the business owes to maintain it operational. Overhead and operational expenses, rents, taxes and salaries are all Section of the liabilities in a corporation, together with payable dividends.