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1. What information does a firm's balance sheet provide to the viewing public?
a. a report of investments made and their cost for a specific period of time
b. a complete listing of all of a firm's cash receipts and cash expenditures for a defined period of time
c. a report of revenues and expenses for a defined period of time
d. an itemization of all of a firm's assets, liabilities, and equity as of the balance sheet date
2. Shareholders, as owners of the corporation, face unlimited liability for the corporation's debts, while bondholders, as creditors, may only lose the value of their investment if the company goes bankrupt.
a. True
b. False
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