3-2 True/False Questions If this problem is assigned as a homework turn-in, use the form in the Excel file Problem 3-2 Answer Sheet to record your answers. Highlight True or False for the following questions: T F 1. The Retained Earnings account is an asset account similar to the Inventory account. TF T F T F T F 2. The Retained Earnings account is similar to the Common Stock account, in that they are both owners' claim-to-assets accounts. 3. The Retained Earnings account tracks the owners' claim to assets that result from the operation of the business. 4. The Retained Earnings account is increased by a debit and decreased by a credit. 5. When a transaction increases a company's Accounts Receivable account the Retained Earnings account must be decreased to keep the accounting system in balance. TF 6. A transaction which decreases the Retained Earnings account must always decrease an asset account to keep the accounting system in balance. TF T F 7. The Common Stock account tracks the owners' claim to assets that result from the operation of the business. 8. The collection of cash from a customer will always result in an increase in the Retained Earnings account. T F 9. The payment of wages to employees for work they performed during the current accounting period will result in a credit to the cash account. TF 10. The Common Stock account is decreased by a debit; while the Retained Earnings account is increased by a debit