1. Which of the following statements is not true?

a.The two sides of the accounting equation are always equal.

b.The owner's equity is increased by amounts invested by the owner and is decreased by withdrawals by the owner.

c.The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.

d.None of these statements are true.

2. Which of the following statements about GAAP is not true?

a.GAAP allows a company's management to record and report data as it sees fit.

b.GAAP is the principles and concepts that the management of a company uses to record and report its financial information.

c.GAAP is a standard set of principles that allows for the comparison of financial performance.

d.GAAP impacts how companies report and what they report.