In what type of accounting system must debits always equal credits? What is the accounting identity? What is the connection between “debits always equal credits” and the accounting identity? – What is the difference between a current asset and a long-term asset? What is the difference between a current liability and a long-term liability? What is the difference between a debtor’s claim and an owner’s claim? – Why is the term residual claimant applied to a shareholder (owner) of a business? – What is the difference between net income and operating cash flow?