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2.2 Balance Sheet (cont'd)<br />

• Assets<br />

– What the company owns<br />

• Liabilities<br />

– What the company owes<br />

• Stockholder’s Equity<br />

– The difference between the value of the firm’s<br />

assets and liabilities<br />

Copyright ©2014 Pearson Education, Inc. All rights reserved. 2-12

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