True or False

1. The accounting equation means the right and the left sides are equal. Thus, the assets on the left should equal the liabilities and capital on the right.

2. Initial investment of the owner in the business is considered capital.

3. Interpreting business transactions seem simple as tracking what comes in and what goes out.

4. Fitting an office with furnishings and equipment increases the assets of the company. Cash and liability may increase or decrease depending on payment term.​