Final answer:
The statement associating specific account numbers with Cash and Supplies is false; account numbering can vary and is not universally fixed to 110 and 120. Account numbers are part of a company's chart of accounts and are used in financial statements like the balance sheet.
Step-by-step explanation:
The statement that if a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120 is False. The numbering system for accounts, known as the chart of accounts, can vary from one business to another. The numbers for asset accounts often start with the digit 1, but the specific numbers assigned to Cash and Supplies could be different depending on the company's accounting practices. It's important to understand that assets are listed on a balance sheet, which is a financial statement used to reflect a company’s assets, liabilities, and net worth. The T-account is a visual representation used in accounting to see the effect of transactions on individual accounts; in these accounts, the 'T' separates assets on the left side from liabilities and net worth on the right side.