In an accounting equation, an increase in total assets can be accompanied by an increase in total liabilities and equity.
The essential accounting equation, additionally known as the balance sheet equation, represents the connection among the assets, liabilities, and owner's fairness of someone or business.
It is the foundation for the double-entry bookkeeping system. For every transaction, the overall debits are equal to the overall credits.
Therefore, In an accounting equation, an increase in total assets can be accompanied by an increase in total liabilities and equity.
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