Quiz – Which of the following statements is CORRECT?
a. The balance sheet for a year is designed to provide us with an idea of what occurred to the firm during that year.
b. The balance sheet tells us how much money the company earned in that year.
c. The difference between the total assets and liabilities reported on the balance sheet tells us the current market value of the stockholders' equity, preparation in accordance with generally accepted accounting principles (GAAP).
d. If a company's statements were prepared in accordance with generally accepted accounting principles (GAAP), the market value of the stock equals the book value of the stock.
e. The assets section of a typical company’s balance sheet begins with cash, then lists the assets in the order in which they will probably be converted to cash, with the longest lived assets listed last.
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