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State Whether Each of the Following Statements Is True or False.Explain

Question 24

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State whether each of the following statements is true or false.Explain the true statements and discuss why the false statements are false.Use illustrations in your answer.

Premises:

Responses:

One thing the accounting equation says is that assets are equal to the sources of the assets.

True

If a transaction causes an asset to increase,another asset cannot simultaneously decrease.

False

An asset cannot be created by incurring a liability.

Premises:

One thing the accounting equation says is that assets are equal to the sources of the assets.

If a transaction causes an asset to increase,another asset cannot simultaneously decrease.

An asset cannot be created by incurring a liability.

Responses:

True

False

Correct Answer:

Premises:

Responses:

One thing the accounting equation says is that assets are equal to the sources of the assets.

If a transaction causes an asset to increase,another asset cannot simultaneously decrease.

An asset cannot be created by incurring a liability.

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