1. When existing investors (of a business) make additional investments to the business, the assets of the business increase.

True

False

2. Additional purchase of inventory increases the expenses of the (host) business.

True

False

3. Cash payments made by customers are always reported as revenues (of the business).

True

False

4. All expenses of a business must be paid in cash to someone eventually.

Group of answer choices

True

False

5. A business may decrease its liabilities by increasing its assets.

True

False

6. (Owners') equity of a business may increase when the business decreases (by selling or even throwing away) its assets.

True

False

7. When a business serves its customer, its liabilities may decrease.

True

False

8. When a business makes the payment of its expense in advance, the amount paid should be recognized as an expense.

True

False