Indicate Whether Each of the Following Statements About Equity Is

question 111

Short Answer

Indicate whether each of the following statements about equity is true or false.
_______ a)Operating expenses reported on the income statement decrease retained earnings.
_______ b)Owners' equity and liabilities can be viewed either as sources of assets or claims to assets of the business.
_______ c)Retained earnings is increased by loans received from a bank.
_______ d)Dividends paid to stockholders decrease common stock.
_______ e)Owners' equity is the residual interest in the company resulting from the difference between assets and liabilities.