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This would be False:
The GAAP account equation is Assets = Liabilities + Owners Equity (which includes capital)
Therefore the correct equation would be:
Assets - Liabilities = Owners Equity (minus not plus)
There is no accounting equation that allows to adding assets and liabilities.
What else can I help you with?
If the liabilities owed by a business total 500000 then the assets also total 500000 True or False?
Yes true, as at any time the balance sheet should be equal so if liabilities and equity is 500000 then asset side should also be at 500000.
Is this true or false purchasing supplies on account increase liabilities and decrease equity?
True. When supplies are purchased on account, it increases liabilities because the business now owes money to the supplier. At the same time, this transaction does not immediately affect equity; instead, it reflects an increase in assets (supplies) and an increase in liabilities, which can indirectly affect equity over time as expenses are recognized.
True or false the debit ratio measures how quickly a company pays off the long term liabilities it has incurred?
False. The debit ratio, more commonly referred to as the debt ratio, measures the proportion of a company's total liabilities to its total assets, indicating the level of financial leverage and risk. It does not specifically assess how quickly a company pays off its long-term liabilities. Instead, metrics like the debt-to-equity ratio or the interest coverage ratio would provide insights into a company's ability to manage and repay its debts.
The income statement includes changes in owner's equity resulting from investments or withdrawals of assets by the owner?
Nope / False
Suta tax payable increases on the debit side of the account True or false?
False, any "payable" regardless of the type will increase the liabilities which has a Credit Balance. Payables are what the company owes but has not yet paid and are considered a liability until they are paid thus increasing liabilities with an increase to the credit side of the balance sheet.There for Suta Tax Payable would be a liability which increase with credit and decrease with debit.
A balance sheet is a list of the assets liabilities and owners equity of a business for a period of time True or False?
false, it is a summary of the three things
is it true or false if the liabilities owed by a business total $300,000 and stockholders equity is equal to $300,000, then the assets also total $300,000?
False
The fundamental accounting equation is expressed as Assets Owner s Equity plus Liabilities True False?
True
If the liabilities owed by a business total 500000 then the assets also total 500000 True or False?
Yes true, as at any time the balance sheet should be equal so if liabilities and equity is 500000 then asset side should also be at 500000.
True or false the correct discount rate for a frim to use in capital budgetingassuming that new investments are of the same degree of risk as the frim's existing assets is its marginal cost of capital?
True
Is this true or false purchasing supplies on account increase liabilities and decrease equity?
True. When supplies are purchased on account, it increases liabilities because the business now owes money to the supplier. At the same time, this transaction does not immediately affect equity; instead, it reflects an increase in assets (supplies) and an increase in liabilities, which can indirectly affect equity over time as expenses are recognized.
True or false the debit ratio measures how quickly a company pays off the long term liabilities it has incurred?
False. The debit ratio, more commonly referred to as the debt ratio, measures the proportion of a company's total liabilities to its total assets, indicating the level of financial leverage and risk. It does not specifically assess how quickly a company pays off its long-term liabilities. Instead, metrics like the debt-to-equity ratio or the interest coverage ratio would provide insights into a company's ability to manage and repay its debts.
True or false Any property such as land or stock that may cover a person's liabilities is called his income?
false
Liquidity true or false -all assets are liquid at some price explain?
false
Is it true or false that the capital of Nebraska is Lansing?
False
The cost of capital should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets?
Yes, the cost of capital is a weighted average of the various sources of long-term funds a firm uses, such as equity and debt. By considering the different costs and proportions of each source, the cost of capital provides a comprehensive measure of the overall cost of financing for the firm's assets.
Is it true or false that Jefferson City is the capital of Iowa?
False. Des Moines is the capital city in Iowa.
