Section III - True and False (Value 20 Points) 1. Assets are tangible or intangible properties of the Business. In other words, they are the resources of the company. 2. The accounting equation is as follows: Assets = Liabilities + Capital 3. The definition of Liability: Probable future economic sacrifice of the company's resources, arising from transactions or events that are not considered debts. 4. An account balance is calculated by adding each side individually and assigning the difference between the totals for the affected side. Example: Accounts Receivable $ 450.00 $ 250.00 1,000.00 300.00 700.00 800.00 400.00 2,150.00 1,750.00 $ 400.00