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Suppose you run a consulting firm offering business advice to clients:
- Intangible Assets: Your brand reputation and client relationships are worth $5,000.
- Current Liabilities: You owe your graphic designer $300 for creating marketing materials.
- Long-Term Liabilities: A business expansion loan of $10,000 is part of your balance sheet.
- Owner’s Equity: You started the firm with $8,000, and you’ve retained $2,000 in earnings.
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Understanding a Balance Sheet (With Examples and …
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