True or false:

a. It is impossible for a firm to have a negative book value of equity without the firm going into bankruptcy.

b. You can construct a sources and uses statement for 2007 if you have a company's balance sheets for 2006 and 2007.

c. The "goodwill" account on the balance sheet is an attempt by ac- countants to measure the benefits that result from a company's public relations efforts in the community.

d. A reduction in an asset account is a use of cash, while a reduction in a liability account is a source of cash.

AppendixLO1