Indicate whether each of the following statements about liabilities is true or false.a)Liabilities are reported on the balance sheet.b)The acquisition of a bank loan increases both assets and liabilities.c)The accounting equation requires that liabilities be equal to stockholders' equity.d)The amount of a company's liabilities is equal to the difference between its assets and its stockholders'equity.e)Liabilities are reported on the statement of cash flows of a business.

Question

Quizplus · Accepted Answer

b)True c)False d)True e)FLiabilities are reported on the balance sheet. The accounting equation requires that assets be equal to liabilities plus stockholders' equity. Liabilities are reported on the balance sheet, not on the statement of cash flows.

Indicate Whether Each of the Following Statements About Liabilities Is