Problem 3-2 True/False Questions If this problem is assigned as a homework turn-in, use the Excel workbook Chapter 03 c-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. T F 2. The Retained Earnings account is similar to the Common Stock account, in that they are both owners' claim-to-assets accounts. TF 3. The Retained Earnings account tracks the owners' claim to assets that result from the operation of the business. TF 4. The Retained Earnings account is increased by a debit and decreased by a credit. TF 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. 6. A transaction which decreases the Retained Earnings account must always decrease an asset account to keep the accounting system in balance. T F 7. The Common Stock account tracks the owners' claim to assets that result from the operation of the business. TF 8. The collection of cash from a customer will always result in an increase in the Retained Earnings account. TF 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. T F 10. The Common Stock account is decreased by a debit; while the Retained Earnings account is increased by a debit.