GAAP and the balance sheet. One of your friends started a business in 2008. At the end of the first year, December 31, 2008, he prepared the following balance sheet. Give three examples from the statement that indicate the statement was not prepared according to GAAP. (LO 1,3)

Transcribed Image Text:

Assets Cash Revenues $2,000 Liabilities Notes payable $ 1,000 1,000 Expenses 1,000 Total assets $3,000 Total liabilities 2,000 Common stock 1,500 Total liabilities & shareholders' equity $3,500