How are liabilities and equity related in a bal... - JSS3 Business studies Balance sheet Question
How are liabilities and equity related in a balance sheet, and why is this relationship important?
Liabilities represent the company's obligations, while equity represents the owners' stake in the company. The relationship is important because it shows how the company's assets are financed – either through debts (liabilities) or investments by shareholders (equity).
Please share this, thanks:
Add your answer
No responses