1.(TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity is (10 points) & (2) provide an example of an owners' equity account. (10 points)(Points : 20)

Owners equity or stockholders equity is the amount left over after liabilities are deducted from assets. Using the accounting equation AssetsLiabilities Owners equity, we can easily subtract liabilities from each side to isolate owner equity. A balance sheet would provide owner equity account information, specifically a corporation would use Common Stock, Retained Earnings, & Dividends accounts to record in the companys stockholders equity.

2.(TCO 1) The financial statements present a company to the public in financial terms. (1)...