Chapter 1, Problem 1.1EX

a)

To determine

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

$\text{Assets = Liabilities + Owners' Equity}$

To Indicate: The type of business for the given companies.

b)

To determine

To Indicate:  To which company accounting equation is relevant.