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  • Which of the following reveals the relation between capit...
Multiple choice

Which of the following reveals the relation between capital, assets and liabilities?

  1. Capital = Assets - Liabilities

  2. Capital = Assets + Liabilities

  3. Assets = Liabilities - Capital

  4. Liabilities = Capital + Assets

  5. None of these

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A Correct answer
Explanation

Correct; capital invested is always the subtraction of liabilities from assets.

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