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The starting point of Financial Accounting is to set up a Balance Sheet.

New terms to learn are: =Assets, Liabilities and Owner's Equity.=

The only equation that we will need to know is: =**A =**L & O.E.=

Now the question is: What are assets, what are liabilities and Owner's Equity?

=__Assets__= are things that are owned that have a $ value. Examples of assets are cash, supplies, vehicles,