Name : Muhamad Bagus Syahlendra

NPM : C1C018034
Class : Accounting C
Subject : English

Chapter 1
Introduction to Accounting

2. Write (T) if it is a true statement and write (F) if it is a false

statement!
1. T Assets, liabilities and owner’s equity are the basic elements of the
accounting equation.
2. T Capital stock represents the initial investment of the stakeholders.
3. F Big profits mean paying less tax.
4. T the income statement reports the amount of net income or loss
determined by substracting expenses from revenues during a specific
time period.
5. F leasing is actually illegal.
6. T The net income or loss from the income statement is recorded in
the statement of owner’s equity.
7. T Accountants are allowed some flexibility in the way the present
accounts.
8. F The balance sheet doesn’t list all assets, liabilities, and owner’s
equity balances as of the last day of the financial period.
9. F When a company leases an asset, the Accountant doesn’t have to
include it in the accounts.
10. T Creative Accounting is sometimes used to try and attract
more investors.