Discussion: The Accounting Equation
The accounting equation is assets = liabilities + owner's equity.
Explain the relationship between economic resources and claims to economic resources.
• Why must this equation always balance?
• What transactions increase or decrease owner's equity?
• How does net income or loss affect owner's equity?
• Provide an example of a transaction, applied to the accounting equation.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.