I am studying accounting and can't understand that.
I understand that assets have a balance of debit, but why expenses?
I understand that Liabilites have a normal balance of credit, but why Revenue and Capital?|||Assets = liabilties + equity.
if you have $1000 cash and you owe $300 to a friend your equity is $700
Assets = liabilities + equity
$1000 = $300 + $700
make sense?
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