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.