UNIVERITY OF TECHNOLOGY, JA SCHOOL OF BUSINESS ADMONISTRATION FUNDAMENTALS OF ACCOUNTING TUTORIAL SHEET 3 Please note that it is the personal responsibility of each student to ATTEMPT the questions on the tutorial sheet BEFORE going to tutorial. Your tutors are there to ASSIST you NOT do the problems for you. Thank you for your co-operation. PROBLEM SET 1 1. Answer true or false to the following statements. a) Equity is decreased if an entity uses cash to buy machinery. b) Owner pays capital into the bank increases equity. c) Assets Equity = Liabilities d) If a creditor is paid there is a decrease in liabilty e) Equity can be termed a liability. f) Assets - Liabilities= Equity g) Equity is increased if the owner takes goods from the business for personal use