Answer the following statements either TRUE or FALSE.

1. Transactions are a businesss economic events recorded by accountants. Each transaction has a dual effect on the accounting equation.

2. Generally companies prepare FIVE (5) types of financial statements and one of it is a Trial Balance.

3. Statement of Income reports the profitability of the companys operations over a specific period of time.

4. Ledger is a snapshot of the companys financial condition at a specific moment in time (usually the month-end or year-end).

5. The basic accounting equation is in balance when the creditor and ownership claims against