1 the accounting equation can be stated as assets liabilities owner 39 s equity 2 as 4300917

1) The accounting equation can be stated as assets + liabilities = owner's equity.

2) Assets are economic resources of a business expected to be of benefit in the future.

3) Owner's equity is often referred to as net assets and represents the residual amount of business assets that can be claimed by the owner.

4) An owner investment would increase the assets and decrease the liabilities of the firm.

5) The purchase of supplies on account would have an effect on the owner's equity of the firm.

6) One way of increasing the equity of a business is to increase a liability.

7) The recording of an owner withdrawal has the same effect on owner's equity as the recording of an owner investment.

8) When a revenue is recorded, the asset account cash is always increased along with owner's equity.

9) Increases in owner's equity result from revenues and owner investments while decreases result from expenses and owner withdrawals.

10) The accounting equation can be stated as:

A) Assets = Liabilities – Owner's Equity.

B) Assets – Liabilities = Owner's Equity.

C) Liabilities = Assets + Owner's Equity.

D) Owner's Equity = Assets + Liabilities.