The Accounting Standard followed in Canada in Financial Accounting Standards Board (FASB)* 1 point True False 1 point Economic Entity Assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner. True False point Each transaction that takes place in a company must be analyzed in terms of its effect on the components of the accounting equation. True False Among the 3 forms of business organizations, it is the easiest to transfer ownership in a corporation. * 1 point O True O False Revenues are the gross increases in equity resulting from business activities entered into for the purpose of earning income 1 point * True O False 1 point Retained earnings statement presents the revenues and expenses and resulting net income or net loss for a specific period of time. O True O False Liabilities are the owner's claim on a company's total assets * 1 point O True O False 1 point If a company pays rent of $500 in cash, it will increase the equity side of the equation and decrease assets by $500.* O True O False 1 point Investors & Creditors are examples of external users of accounting information O True False The cost principle dictates that assets be recorded at their cost. 1 point True O False Social Responsibilities are beliefs based on the value system that enables us to differentiate RIGHT from WRONG.* 1 point O True O False The accounting equation can be written as Assets - Equity = Liabilities 1 point O True O False Assets are resources owned by a business. Liabilities are creditors' claims on total assets. point