If a company pays rent of $500 in cash, 1 it will increase the equity side of the equation and decrease assets by $500. True False When you borrow money from a bank, 1 the bank becomes the creditor or lender and the company is the owner or borrower. Based on this, we can say that "Liabilities are the owner's claim on a company's total assets".* True False Economic Entity Assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner. * True False 199