Accounting equation has two sides.

• True

• False

Asset is equal to the total liabilities and owner's equity.

• True

• False

Assets, liabilities and owner's equity are the components of the accounting equation.

• True

• False

Assets are the resources borrowed by the owner.

• True

• False

If the business has liabilities it has obligations.

• True

• False

There are three elements that affect the equity account.

• True

• False

Investments affect the owner's equity account.

• True

• False

Assets and liabilities increase when the company purchases supplies on account

• True

• False

There is an increase in liability when you buy equipment on account.

• True

• False

If there is a PhP 500,000-worth of assets and PhP 200,000 worth of liabilities, then there is PhP 300,000 worth of owner's equity.

• True

• False