7. The accounting equation can be stated as A. Expenses Liabilities - Owner's Equity B. Assets Liabilities Owner's Equity c. Liabilities Revenue + Owner's Equity D. Owner's Equity = Assets + Liabilities 8. Cash investments made by the owner to the business are reported on the Statement of Cash Flows in the A. opening activities section. B. operating activities section. c. financing activities section. D. investing activities section. 9. If total assets decreased by RM10,500 and owner's equity increased by RM3,000 during the same period, then the amount and direction of the period's change in total liabilities is A. RM13,500 increase B. RM7,500 decrease c. RM7,500 increase D. RM13,500 decrease 10. How does the purchased of supplies on account affects accounting equation? A. Liabilities increase; owner's equity decrease B. Assets increase; owner's equity increase c. Assets decrease; owner's equity increase D. Assets increase; liabilities increase 11. The followings are the basic characteristics for financial information to be useful EXCEPT A. relevance. B. creative. c. comparable. D. reliable