True / False Questions. Please JUSTIFY FALSE statements (6 marks, . The accounting equation can be restated as: Assets - Equity -Liabilities True False 2. Owner's investments are increases in equity from a company's earnings activities. True False 3. Every business transaction leaves the accounting equation in balance. True False An external transaction is an exchange of value within an organization True False s. From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured. True False Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable, True False 7. An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity investment). True False X. An income statement reports on investing and financing activities. True False A balance sheet covers a period of time such as a month or year. True False 10. The income statement displays revenues earned and expenses incurred over a specified period of time due to earnings activities. True False 11. The statement of cash flows shows the net effect of revenues and expenses for a reporting period. True False