EQL212 2

Assets are the things that the company owns.

• True

• False

Liabilities are the things that the company owes.

• True

• False

The sum of liabilities and equity is equals to assets.

• True

• False

If the assets and liabilities side are equal, the balance sheet is said to be balanced.

• True

• False

Shareholders' equity is the amount that the investors/owners of a company have invested in their business.

• True

• False

Share capital is a part of shareholder's equity.

• True

• False

Retained earnings are the amount of profit a company has left over after paying all the costs, etc.

• True

• False

Retained earnings is calculated before paying the taxes.

• True

• False

Retained earnings is a part of assets of the company.

• True

• False

Money invested by the owners of the company is _______.

• share capital

• retained earnings