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> assets = liabilities + net income

That's a non-equation, of course. Assets and liabilities are in dollars and net income is in dollars-per-unit-time.

Naturally, any conclusion arising from algebraic rearrangement of that non-equation will also be non-sensical.



This is a fair comment. I was looking at (delta assets), (delta liabilities).

(Edit:

The simplest thing is to consider a simplified accounting equation that says assets = liabilities. If I wanted to buy a house but had no personal worth, how would I afford it? Debt. The house would be the asset, the liability would be the debt.)




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