Target: compare sole-trader and public-company account categories without inferring performance from position alone. Prepare: Case E, comparison grid aid.
- Launch · 2 min. Ask whether twice the assets means twice the profit. E provides no profit information.
- Model · 4 min. River Post: $20,000 assets = $8,000 liabilities + $12,000 owner's equity. Metro Supply Ltd: $40,000 = $20,000 + $20,000 shareholders' equity. Cash, receivables, inventory, equipment, payables and loans appear in both; the equity label/owners differ.
- Guided reading · 5 min. Pair the similar accounts, then mark the separate-entity boundary for Metro. A shareholder has an interest, not a personal claim to each item of company cash. Discuss accountant preparation/interpretation and the auditor's independent opinion where required; neither guarantees profit.
- Practice route · 7 min. Select Day 8 route. Create a two-column comparison with two similarities, two differences and one conclusion that E cannot support.
- Audit · 4 min. Repair “Metro is a better investment because it has $40,000 assets.” Seek profit, cash, debt context, reporting notes, risk and purpose.
- Exit · 3 min. “What term names Metro's residual owner interest?” Expected: shareholders' equity.