20.

Visualize an average U.S. manufacturing company, and think about its balance sheet.

Statement 1: Current assets will be consumed or converted into cash in one year or less.

Statement 2: The liability accounts are listed in order of when they must be satisfied.

Statement 3: The asset accounts are listed in order that they were purchased.

Statement 4: Its purpose is to describe the firms financial conditionincluding its assets and the means of financing its operations.

Statement 5: Its data applies to a period of time.

Which of the following selections relating to these statements is true?

a. Statements 1, 2, 3 and 5 are correct.

b. Statements 3 and 5 are correct.

c. Statements 1, 2, 4 are correct.

d. All of the statements are correct.