1. The three principal financial statements are the balance sheet, income statement, and the statement of retained earnings? (TRUE / FALSE)
2. the right side of the balance sheet lists claims against assets? (TRUE/FALSE)
3. on. a balance sheet, total assets must always equal the sum of liabilities and owners equity? True / false

• A firm's balance sheet shows its financial position over a period of time. (T/F)
• The balance sheet is based on the accounting equation. (T/F)
• Double-entry bookkeeping refers to the process by which accounting transactions are recorded. (T/F)
• The Securities and Exchange Commission is the chief federal regulator of financial markets and the accounting industry. (T/F)