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John has been working on a math problem late at night without success; he falls asleep. Upon awakening, John suddenly realizes how to answer the problem. This BEST illustrates which of the following?
Debts
Money that is owed or due to another individual or entity.
Assets
Assets are resources owned by a business or individual that have economic value and can bring about future benefits, such as cash, real estate, and machinery.
Liabilities
Financial obligations or debts of a business that arise during the course of its operations, required to be settled over time.
Owner's Equity
The residual interest in the assets of an entity after deducting liabilities, representing the capital owned by the shareholders or owner.
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