1. A balance sheet summarizes the financial position of a firm at a particular point in time by identifying and reporting the value of the firms assets, liabilities, and owners equity.

True

False

2. As a shareholder of the Lindburgh Corporation, Lara wants to know whether the company earned a profit or loss during the past year. Lara can find this information in the company's _____.

	a.	articles of incorporation
	b.	master budget
	c.	income statement
	d.	statement of cash flows

3. Managerial accounting:

	a.	provides managers information about a firm's financial situation on a predetermined schedule.
	b.	is the branch of accounting that adheres most strictly to the generally accepted accounting principles.
	c.	provides reports and analysis to external stakeholders to show them the current business state.
	d.	provides reports and analysis to managers to help them make informed business decisions.

4. Imagine that as of today, Apple is owed $15.7 billion from those who've purchased Apple products and haven't paid for them yet. $15.7 billion would be recorded as accounts payable in the liabilities sectionof Apple's balance sheet.

True

False