True or False- 1. Assets are items that are owned by the business and are expected to provide future benefits. 2. Accounts Payable is an example of an asset account. 3. According to the business...

1. Assets are items that are owned by the business and are expected to provide future benefits.

2. Accounts Payable is an example of an asset account.

3. According to the business entity concept, nonbusiness assets and liabilities are not included in the business’s accounting records.

4. The accounting equation (Assets = Liabilities + Owner’s Equity) must always be in balance.

5. When an asset increases, a liability must also increase.

6. Expenses represent outflows of assets or increases in liabilities as a result of efforts to produce revenues.

7. When total revenues exceed total expenses, the difference is called net loss.