Lo 1That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following?

1. 
   revenue recognition principle
   
2. 
   expense recognition (matching) principle
   
3. 
   cost principle
   
4. 
   full disclosure principle
   

13. LO 3.2 Which of the following does not accurately represent the accounting equation?

1. 
   Assets – Liabilities = Stockholders’ Equity
   
2. 
   Assets – Stockholders’ Equity = Liabilities
   
3. 
   Assets = Liabilities + Stockholders’ Equity
   
4. 
   Assets + Liabilities = Stockholders’ Equity
   

14. LO 3.2 which of these statements is false?

1. 
   Assets = Liabilities + Equity
   
2. 
   Assets – Liabilities = Equity
   
3. 
   Liabilities – Equity = Assets
   
4. 
   Liabilities = Assets – Equity
   

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