Reference no: EM132792332

Problem 1: The elements of the balance sheet as identified by FASB Statement of Concepts are:

(a) liquidity, financial flexibility, and operating capability.

(b) assets, liabilities, and stockholders' equity.

(c) financial capital, physical capital, and contributed capital.

(d) current assets, property, plant, and equipment, current liabilities, long- term liabilities, and retained earnings.

Problem 2: Stockholders' equity is defined as:

(a) assets minus retained earnings.

(b) assets plus liabilities.

(c) liabilities minus assets.

(d) assets minus liabilities.

Problem 3: Current assets could include:

(a) accounts receivable, temporary investments, and land.

(b) cash, prepaid rent, and inventory.

(c) cash, accounts payable, and investments.

(d) accounts receivable, accumulated depreciation, and inventory.