Super important, very sorry!

1. Assets of a company are created by financing through debt and equity. True or False?

2. Assets are the resources invested by the host company to use for its operating activities. True or False?

3. When a corporation buys back its own common stocks (that is known as Treasury stocks) from existing shareholders, the company's asset amount decreases. True or False?

4. Owners Equity is the amount that shareholders can claim on the companys assets before the company makes the payment to its creditors. True or False?

5. Owners Equity is also called the "residual value" because the company's creditors must be paid first for liabilities. True or False?

6. Retained Earnings are part of Owners Equity although the entire amount is included in the company's assets. True or False?

7. Retained Earnings indicates the amount of accumulated Net Profit (& Losses) from the operations reinvested back into the company after paying dividends. True or False?

8. The cash amount of a corporation presented in its Balance Sheet includes the Retained Earnings. True or False?

9. When a company continuously reports net losses from its operations, its retained earnings may become negative. True or False?