Belongs to Principle of Hospitality Finance

Chapter 4: The Balance Sheet

1. A balance sheet reveals, at a fixed point in time, the amount of wealth a company possesses.

a. True

b. False

2. If two businesses gross the same amount of revenue for a year and generate the same after- tax profit, you can be sure their owners equity will be the same. a. True b. False
3. The balance sheet indicates the average amount of cash on hand during a specified time period.

a. True

b. False

4. A balance sheet represents the value of a businesss assets, liabilities and owners equity over a specified time period. a. True b. False
5. Vacant land owned by a company that plans to build on the site is included in noncurrent assets on the balance sheet. a. True b. False
6. Marketable securities are the companys own stocks shown on the balance sheet.

1. True
2. False

7. Hotel guests prepaid deposits are listed on the balance sheet as a current liability.
   1. True
   2. False