Count everything, or almost everything. Just about every event that happens in a business results in changes to the assets, liabilities, or equities. For this
reason, it is critical for the accountant to analyze how every business event affects the basic accounting equation, and how every event must be managed. Part
1 of the assessment is a good test of your critical thinking skills as you apply them to the components of the accounting cycle, in particular the basic
accounting equation for the balance sheet.