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Consider a scale in balance with all your assets (+ things) in the right hand pan balanced by all your liabilities (- things) in the left hand pan.
If I add an asset to the right hand pan it will move down on the right. Adding a positive (asset) has a positive effect.
But equally if I take away a liability from the left hand pan it will also move down to the right. Taking away a negative (liability) has a positive effect. |