Question

TRUE OR FALSE QUESTIONS 1. Assets are always equal to capital–liabilities. 2. On adding the amount of capital and liabilities the total is the amount of assets. 3. Drawings decrease capital and increase assets. 4. Outstanding expenses decrease capital5. Prepaid expenses have no effect on capital. 6. Interest on capital finally increases capital. 7. Purchase of machinery for cash will decrease the assets. 8. Payment of salary will decrease capital. 9. Profit included in selling price increases capital. 10. Acceptance of bill of a creditor decreases assets.

Answer 1

Answer:

1)flase

2)true

3)true

4) true

5) true

6) false

7 true

8 true

9flase

10 true