Activity 1

Directions: TRUE or FALSE: Write T if the statement is true and F if the statement is wrong.

Write your answer on a separate sheet of paper.

1. The balance sheet can be prepared at any time, it is mostly prepared at the end of

the accounting period.

2. An income statement is a financial statement that shows the assets, liabilities, and

owner's equity of a business at a particular date.

3. A report form balance sheet is a balance sheet that presents asset, liability, and

equity accounts in a vertical format.

4. Liabilities are obligations to parties other than owners of the business.

5. Owner’s equity is the obligation of the business to its owners.​