TRUE FALSE STATEMENTS Retained earnings are a part of stockholders' equity The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity. Treasury stock should not be classified as a current asset. Preferred stockholders generally do not have the right to vote for the board of directors A partnership is an association of no more than two persons to carry on as co- owners of a business for profit. Once assets have been invested in the partnership, they are owned jointly by all partners. Each partner's initial investment in a partnership should be recorded at book value Partnership income is shared in proportion to each partner's capital equity interest unless the partnership contract specifically indicates the manner in which net income or net loss is to be divided The three basic tools of analysis are horizontal analysis, vertical analysis, and ratio analysis. Vertical analysis is useful in making comparisons of companies of different sizes. Meaningful analysis of financial statements will include either horizontal or vertical analysis, but not both. 12. The current ratio is a measure of all the ratios calculated for the current year