Reference no: EM132739291

Problem 1: Which of the following statements is false?

a. Owner's equity can be bigger than the total liabilities

b. Owner's equity can be bigger than the total assets

c. Owner's equity cannot be bigger than the total assets

d. Total liabilities can be bigger than the owner's equity

Problem 2: The basic difference between financial statements of a merchandising entity a service entity include the cost of goods sold section of the income statement and the

a. Equity section of the balance sheet

b. Inclusion of the merchandise inventory on the balance sheet as a current asset

c. Other income section of the income statement

d. Profit figure