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Which of the following statements explain(s) how the accounting equation applies to businesses? Check all that apply. The equation states that Assets = Liabilities +
Which of the following statements explain(s) how the accounting equation applies to businesses? Checkallthat apply.
- The equation states that Assets = Liabilities + Equity.
- The equation reflects the fact that, at any point in time, total revenues will always equal total liabilities and assets.
- The equation applies to all transactions.
- The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.
- The equation states that Revenues - Expenses = Assets.
- The relation of assets, liabilities and equity is reflected in the equation.
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