Write True if the statement is true and write false if the statement is false and the word that makes the statement false

PROBLEMS 3: TRUE OR FALSE 1. Legal ownership is a necessary criterion when determining the existence of an asset. 2. You acquired a car through an auto loan. The bank holds the registration papers of the car until you have fully paid the loan. Right now, the car is not yet your asset even though you are already using it because you don't legally own yet the car. 3. An essential element of an asset is control". Control means ownership. 4. Control an asset refers to an entity's exclusive right to enjoy the benefits from the resource or the entity's ability to prevent others from enjoying those benefits. 5. Legal obligations arise only from law. 6. Obtaining a loan increase both your assets and liabilities, but not your equity. 7. Equity is assets plus liabilities. 8. Assets can arise from future events. 9. Capital, net asset and net worth are other terms used to describe equity. 10. Assets plus equity equals liabilities. PROBLEMS 4: TRUE OR FALSE 1. You had a house constructed through a housing loan. You moved in to your new home. However, the bank holds title over your property until you have fully paid the loan. The house is already your asset even if you have not yet fully paid the loan because you control the economic benefits from the property. 2. Control over a resource must have been obtained first before an asset is recorded. A mere intention to obtain control over a resource at a future time does not warrant the recognition of an asset. 3. You bought a pair of shoes. You realized that the shoes don't look good on you so you decided not to use them anymore. However, you don't want to give the shoes away or let others use it. The shoes are not your asset. 4. The shoes in #3 above still has future economic benefits even if you don't want to use them anymore because you can still sell them or exchange them for other resources. 5. "Economic benefits means the potential of a resource to provide an entity, directly or indirectly, with cash. 6. Physical possession is a necessary condition in order for control to exist. 7. Expenses can result to an increase in assets. 8. Your business has total assets of P10M, total liabilities of P6M and total equity of P4M. this means that out of the total P10M resources, P6M were provided by your creditors and not you. 9. Income increases equity. 10. Profit decreases equity