Discuss if the following statements are true or false.

a. The terms accounts receivable and creditors mean the same thing.

b. The balance sheet is a financial statement that shows the financial position of an entity as at a point in time c. Ms Entrep invests her own cash to start a business. This transaction will increase the equity and assets of the business d. All entities are legally obliged to prepare general purpose financial reports

e. The measurement system used in accounting is historical cost

f. The balance sheet for Promotion Pty Ltd reveals cash on hand of $8000, accounts receivable of $48 000, inventory measured at $50 000 and plant and equipment measured at $116 000. The liabilities of the entity are: accounts payable $28 000, a bank overdraft of $32 000 and a loan of $180 000. Relate this information to the liquidity of the entity