1. The balance sheet is useful for analyzing all of the following except A) liquidity. B) solvency. c) profitability. D) financial flexibility. 2. The net assets of a business are equal to A) current assets minus current liabilities. W B) total assets plus total liabilities. C) total assets minus total stockholders' equity. (D) none of these answer choices are correct. 3. The basis for classifying assets as current or noncurrent is conversion to cash within A) the accounting cycle or one year, whichever is shorter. (B) the operating cycle or one year, whichever is longer. C) the accounting cycle or one year, whichever is longer. D) the operating cycle or one year, whichever is shorter. 4. Which of the following is not a required supplemental disclosure for the balance sheet? A) Contingencies B) Financial forecasts onsled doors C) Accounting policies D) Contractual situations DO Page 1