Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's operations, $3 million is spent on assets and $4 million is borrowed from the Bank. By the end of the first month they have also bought $20 million of goods for resale on credit and made sales of $25 million on credit. There is no inventory left. Ignore all other transactions and expenses. 

Write the accounting equation at that point in time.

Answer rating: 100% (QA)

The accounting equation is Assets Liabilities Shareholders Equity At that point ... View the full answer