1

The balance sheet is also called the statement of condition or statement of financial position.

1. True
2. False

QUESTION 2

The balance sheet is prepared for a period of time,generally a year.

1. True
2. False

QUESTION 3

The balancing equation is expressed as:

a.Assets + Liabilities = Stockholders' Equity.

b. Revenues Expenses = Net Income.

c. Sales Costs = Net Profit.

d. Assets = Liabilities + Stockholders' Equity.

QUESTION 4

Which of the following accounts would be classified as current assets on the balance sheet?

a. Accounts receivable, inventory, cash equivalents.

b. Marketable securities, accounts payable, property, plant and equipment.

c. Prepaid expenses, goodwill, long-term investments

d. Property, plant and equipment, inventory, goodwill.

QUESTION 5

Which method of inventory assumes the last units purchased will remain in ending inventory on the balance sheet?

a. FIFO.

b. LIFO.

c. Average cost

d. LIFO and FIFO