Liabilities are what a company owes its owners in future products or services.Equity refers to the claims of its owners.

Owners'<br/>equity in a business increases as a result of which of the<br/>following? () A: Payments<br/>of cash to the owners. B: Losses<br/>from unprofitable operation of the business. C: Earnings<br/>from profitable operation of the business. D: Borrowing<br/>from a commercial bank.

Why is the Thai elephant “out of work”, according to the author? A: Because the elephants are no longer useful to their owners. B: Because their owners are westernized and neglect them. C: Because the government pays little attention to the problem. D: Because there are too many elephants and too few jobs.

Keeping a pet cultivates healthy living habits in pet owners.

A corporation is a legal entity that is separate and distinct from its owners. （ ）

Revenues can lead to an increase in the owners’ equity, and therefore, the increase in the owners’ equity should be recognized as the income of a firm. ( )

The statement of owners' equity simply list the beginning balance, additions, deductions and ending balance of owners' equity for the accounting period. when capital contributions have been made during the period, we must exame the owners' capital accounts in the general ledger to deternine the exact ending balance of owners' equity.

A business entity is regarded as separate from the personal activities of its owners.

Board of directors are the owners of a company.

Assets= liabilities + owners’ equity