List and explain the four items under the umbrella of owner’s equity, including whether it increases or decreases overall equity.

PART I: SHORT RESPONSE

Directions: Please respond to each of the following questions. Write at least 3 to 5 sentences for each question.

1. List and explain the four items under the umbrella of owner’s equity, including whether it increases or decreases overall equity.

2. What is the fundamental accounting equation, including examples of each item of the equation?

3. Explain the separate entity concept, including why it is important to accounting.