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•The following table shows the accounting equation<br />

for 2007 and 2008.<br />

Year Assets Liabilities Stockholder’s<br />

Equity<br />

2008 17,991 8,617 9,374<br />

2007 12,963 5,460 7,503<br />

The quantities above are in millions of dollars<br />

•What I can see from the table is that all the accounts<br />

have increased, but the assets account has increased<br />

the most. Those figures show that the company’s<br />

economic resources are in good shape; meaning that<br />

the company can afford its debts.

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