QUESTION #1 Which of the following is a FALSE statement?

A. Accounting income is rarely equal to a firm's cash flow. B. Accounting statements are usually prepared to match the timing of income and expenses. C. All public companies are required to file timely, audited financial statements for purpose of public perusal. D. The balance sheet tells investors exactly what the firm's market value is. E. Assets are usually recorded on the balance sheet at their acquisition value.

QUESTION #2

A firm has net working capital of $8,100 and current assets of $14,600. Total assets equal $32,900. What is the book value of the firm if long term debt is $7,500?

A. $2,700 B. $10,800 C. $17,300 D. $18,900