Case Stucly: Balancing the Accounting Equations at ABC Corporation ABC Corporation, a mid-sized retall company, is facing challenges in balancing its accounting equations. The company is struggling with discrepancies and inaccuracies in its financial statements. As an accounting consultant, your role is to assess the situation, identify the issues, and propose solutions to ensure that the accounting ecuations are correctly balanced. Background: ABC Corporation's accounting department has been facing issues with balancing the fundamental accounting equations: the accounting equation, the income statement equation, and the cash fiow statement equation. The discrepancies have resulted in Inaccurate financial statements and reports that are affecting the company's cecisionmaking processes. Key Challenges: 1. Imbalanced Accounting Equations: The accounting equatlons, specifically the accounting equation (Assets = Liabilities + Equity), often fail to balance due to inaccuracies in the recording and reporting of financial transactions. 2. Inaccurate Financial Statements: The discrepancies in the accounting equations have led to inaccuracies in the income statement and cash flow statement, making it challenging for the company to gauge its financial health. 3. Decision-Making Implications: The inaccuracies in financlal statements are affecting the company's abllity to make intormed decislons, set financlal goals, and assess its overall financial performance. Questions: 1. Assess the challenges faced by ABC Corporation in balancing its accounting equations. Discuss the implications of these imbalances on the company's financial reporting, transparency, and overall financial health. 2. Based on your assessment of ABC Corporation's accounting equation challenges, propose specific solutions to address the issues and ensure the correct balancing of the accounting equations. Explain how these solutions can lead to accurate financial reporting, transparency, and better financial decision-making