Johnson company pays the software company $5,000 with a check that they bought. Which the following statement is true? A: Assets are increase and liabilities are increase. B: Assets are decrease and owner’s equity is decrease. C: Assets are decrease and liabilities are decrease. D: Assets are increase and owner’s equity is increase.

Which of the following statement related to the three elements in a balance sheet is not true? A: Liabilities= Assets + Owners’ equity B: Assets refer to the resources controlled by the firm C: Liabilities refer to the amounts owed to lenders and other creditors D: Owner’s equity refers to the residual interest in the net assets of an entity that remains after deducting its liabilities

The liabilities of Emerald Co. equal one-third of the total assets, and owner’s equity is $120,000. What is the amount of the liabilities?

A firm’s ______ reports the book value of all assets, liabilities, and owner’s equity at a given point in time.

The matching principle provides guidance in accounting for ( ). A: Expenses B: Assets C: Owner’s equity D: Liabilities