1) Corporations are separate entities that pay their own taxes. a) TRUE b ) FALSE 2) Businesses that install internal controls can facilitate efficiency, profitability, and minimize fraud and theft. a) TRUE b) FALSE 3) Foundations of business accounting can be used in personal finance. TRUE b) FALSE 4) The balance sheet represents what you own (assets) and what you owed (liabilities), and is a temporary record. a ) TRUE b) FALSE 5) The accounting equation: Assets = Liabilities + Net Worth. a ) TRUE b) FALSE 6) Accrual accounting is recognizing revenue (decreases net worth) and expenses (increase net worth) in the time period in which they occur, regardless of when the payment is received or made. a) TRUE b) FALSE