Which of the following statements is NOT true?

a.The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.

b.The two sides of the accounting equation are always equal.

c.A business owner's personal assets are considered part of owner's equity.

d.The owner's equity is increased by amounts invested by the owner and is decreased by withdrawals by the owner.

____

Money earned by a business for selling goods or services to its customers represents

a.revenues.

b.expenses.

c.liabilities.

d.assets.

_____

Cool Taste Company purchased $3,100 of supplies with cash. What effect does this transaction have on the accounting equation?

a.$3,100 increase in assets and $3,100 increase in owner's equity

b.$3,100 increase in assets and $3,100 increase in liabilities

c.No overall effect on the components of the accounting equation

d.$3,100 decrease in assets and $3,100 decrease in owner's equity