True/False
Indicate whether the sentence or statement is true
or false.
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1.
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The
accounting equation can be expressed as Assets - Liabilities = Owners Equity.
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2.
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If
the liabilities owed by a business total $500,000, then the assets also total $500,000.
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3.
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If
the assets owned by a business total $100,000 and liabilities total $50,000, owners equity total
$150,000.
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4.
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If
total assets decreased by $40,000 during a specific period and owners equity decreased by $45,000
during the same period, the period's change in total liabilities was a $85,000
increase.
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5.
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If
total assets increased by $175,000 during a specific period and liabilities decreased by $10,000
during the same period, the period's change in total owners equity was an increase of
$185,000.
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Problem
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6.
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Determine the missing amount for each of the following:
Assets | Liabilities | Owners
Equity | (a)
? | $18,000 | $11,000 | (b)
$50,000 | ? | $28,000 | (c)
$35,000 | $
7,000 | ? | | | |
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