PART 3: TRUE/FALSE (1 POINT) Instructions: Read each statement and determine if it is true or false. Circle the word "TRUE" or "FALSE" beside each statement. 1 True False 2 True False 3 True False 4 True False A disadvantage of a corporation is that the stockholders are personally liable for the debts of the business. The element in the annual report that describes the corporation's accounting policies is the Management Discussion and Analysis. Net income will result during a time period when assets exceed expenses. To determine how much debt a company has at the end of the year a creditor would look at the balance sheet