$1.$ Here is an excerpt from an email I received today from someone trying to sell me learning materials about accounting. Evaluate what this person had to say about the accounting equationand then tell me if you would trust what they have to say...in not more $1-2$ paragraphs.

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What$$s So Special About The Accounting Equation?

This concept is a crucial concept to understand for a few reasons...

$1.$ The Balance Sheet is the most important statement

This statement is the most powerful of the $3$ statements because it contains the most amount of information that you will find in any of the Financial Statements.

Your Balance Sheet includes values from the Income Statement via an account called Retained Earnings.

That in essence is an accumulation of the prior earnings and losses that get accumulated from the Income Statement.

Similarly, the statement of cash flows analyzes the differences in an important Balance Sheet account...your cash.

You can get to the same calculations that you would get on the statement of cash flows by simply taking the net change in all accounts from one period to another on the balance sheet, except for Cash.

$2.$ The Balance Sheet must always balance, due to double entry accounting

Double Entry accounting states that every transaction that takes place affects $2$ sides of a business.These $2$ items will always impact the balance sheet, causing either of these $3$ sections to go up$,$ or down.The key is that anytime a liability or an owners equity account goes up$,$ the same must take place for an

asset and vice versa. This will be especially relevant when we discuss another important topic, our debits and credits.