Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding

Question:

Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding of key terms by answering the following questions:
1. How do the assets and owners equity of Microsoft differ from each other? Which one (assets or owners equity) must be at least as large as the other? Which one can be smaller than the other?
2. How are Microsoft’s liabilities and owners equity similar? Different?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...