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2. T/F Financial statements are reports that summarize the financial condition and operations of a business. 3. T/F The accounting equation…

2. T/F Financial statements are reports that summarize the financial condition and operations of a business. 3. T/F The accounting equation is: Assets= Liabilities + Owner’s Equity. 4. T/F Each fraction changes the balance of only one account 5. T/F Assets taken out of a business for the owner’s personal use are called withdrawals. 6. T/F The two types of equity are liabilities and owner’s equity 7. T/F Cash, supplies, and prepaid insurance are liability accounts. 8. T/F The financial rights to the assets of a business are called equities. 9. T/F The terms “ Business Entity,” “ Unit of Measurement, “ and “ Realization of Revenue” are examples of accounting concepts. 10. T/F A business that perform an activity for a fee is called a service business. 11. T/F The name given to an account is called an account title 12. T/F A normal business activity that changes assets, liabilities, or owner’s equity is called a transaction. 13. T/F a proprietorship has limited liability

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