3. What is the balance sheet equation?

Definition:The balance sheet equation or accounting equation is the most basic, fundamental part of accounting. The balance sheet equation forms the building blocks for the entire double entry accounting system.

The balance sheet is based on the fundamental equation:

Asset = Liabilities + Equity.

It helps the company to prepare a balance sheet and see if the entire enterprise's asset is equal to its liabilities and stockholder equity.

answer; ///(c) i believe its it ignores cash flows following the payback period;

answer; interviews;