Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding

Question:

Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding of key terms by answering the following questions:

1. How do the assets and shareholders' equity of Dollarama differ from each other? Which one (assets or shareholders' equity) must be at least as large as the other? Which one can be smaller than the other?

2. How are Dollarama's liabilities and shareholders' equity similar? How are they different?

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