After six months, Speakers, Inc. is growing rapidly and needs to find a new place of business. Ted decides it makes the most financial sense for Speakers, Inc. to buy a building. Since Speakers, Inc. doesn’t have $500,000 in cash to pay for a building, it must take out a loan. Business owners with a sole proprietorship and small businesses that aren’t corporations use Owner’s Equity. Therefore cash (asset) will reduce by $60 to pay the interest (expense) of $60. However, some assets are less liquid than others, making them harder to convert to cash. Regardless of how the accounting equation is represented, it is important to remember that the…