2.1 An accountant prepared a statement of financial position for a business. In this statement, the equity
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2.1 An accountant prepared a statement of financial position for a business. In this statement, the equity of the owner was shown next to the liabilities. This confused the owner, who argued ‘My equity is my major asset and so should be shown as an asset on the statement of financial position.’ How would you explain this misunderstanding to the owner?
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Financial Accounting For Decision Makers
ISBN: 9781292099040
8th Edition
Authors: Peter Atrill, Eddie McLaney
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