Task 3. Are the statements True or False?(if False, explain why)(10 points) 1. Assets are items that can be sold by a business for money. 2. Equity is calculated by subtracting liabilities from assets. 3. The balance sheet shows the financial position of a business over a period of time. 4. A balance sheet is divided into three sections:assets, liabilities, and equity. 5. The financial position of a business remains constant over time. 6. The income statement is used to show the financial position of a business at a specific point in time. 7. A debit entry increases the balance of liabilities account. 8. Liabilities are items that have a positive financial value for a business. 9. The chart of accounts is unique for each business. 10. A credit entry increases the balance of an income account. Task 4. Choose the correct answer (5 points) 1. What is the main idea behind the conservatism accounting principle? A/It's better to be safe than sorry. B. Anticipated profits are recorded immediately C. All losses are recorded when they occur. D. Anticipated losses are not recorded. 2. According to the consistency accounting principle, how should transactions and valuation methods be treated? A. They should vary greatly in quality over time. B. They should be treated differently from year to year. C. They should be consistent from year to year. D. They should be changed frequently. 3. What does the going concern principle mean? A. A business is financially stable and can operate indefinitely. B. A business is financially unstable and may go bankrupt. C. A business can operate without any financial concerns. D. A business is expected to operate for a short period of time. 4. How should a company apply the consistency accounting principle? A. By switching between different methods of recording transactions. B. By using the same valuation methods every year. C. By changing the approach without any solid reason. D. By recording transactions inconsistently. 5. What happens if a major customer goes bankrupt according to the going concern principle? A. The business assumes the customer will pay outstanding accounts receivable. B. The business looks for another customer of the same size. C. The business continues to operate without any concerns. D. The business questions whether outstanding accounts receivable will be paid.

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Task 3. Are the statements True or False?(if False, explain why)(10 points) 1. Assets are items that can be sold by a business for money. 2. Equity is calculated by subtracting liabilities from assets. 3. The balance sheet shows the financial position of a business over a period of time. 4. A balance sheet is divided into three sections:assets, liabilities, and equity. 5. The financial position of a business remains constant over time. 6. The income statement is used to show the financial position of a business at a specific point in time. 7. A debit entry increases the balance of liabilities account. 8. Liabilities are items that have a positive financial value for a business. 9. The chart of accounts is unique for each business. 10. A credit entry increases the balance of an income account. Task 4. Choose the correct answer (5 points) 1. What is the main idea behind the conservatism accounting principle? A/It's better to be safe than sorry. B. Anticipated profits are recorded immediately C. All losses are recorded when they occur. D. Anticipated losses are not recorded. 2. According to the consistency accounting principle, how should transactions and valuation methods be treated? A. They should vary greatly in quality over time. B. They should be treated differently from year to year. C. They should be consistent from year to year. D. They should be changed frequently. 3. What does the going concern principle mean? A. A business is financially stable and can operate indefinitely. B. A business is financially unstable and may go bankrupt. C. A business can operate without any financial concerns. D. A business is expected to operate for a short period of time. 4. How should a company apply the consistency accounting principle? A. By switching between different methods of recording transactions. B. By using the same valuation methods every year. C. By changing the approach without any solid reason. D. By recording transactions inconsistently. 5. What happens if a major customer goes bankrupt according to the going concern principle? A. The business assumes the customer will pay outstanding accounts receivable. B. The business looks for another customer of the same size. C. The business continues to operate without any concerns. D. The business questions whether outstanding accounts receivable will be paid.

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Task 3. Are the statements True or False?(if False, explain why)(10 points)1. False. Assets are items that have economic value and can provide future benefits to a business, not necessarily items that can be sold for money.2. True.3. False. The balance sheet shows the financial position of a business at a specific point in time, not over a period of time.4. True.5. False. The financial position of a business can change over time due to various factors such as revenue, expenses, and investments.6. False. The income statement is used to show the financial performance of a business over a period of time, not the financial position at a specific point in time.7. False. A debit entry increases the balance of assets and expenses accounts, not liabilities accounts.8. False. Liabilities are obligations or debts that have a negative financial value for a business.9. True.10. True.Task 4. Choose the correct answer (5 points)1. A/It's better to be safe than sorry.2. C. They should be consistent from year to year.3. A. A business is financially stable and can operate indefinitely.4. B. By using the same valuation methods every year.5. D. The business questions whether outstanding accounts receivable will be paid.

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