Quiz – Which of the following statements is CORRECT?

Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston


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.

Experts Have Solved This Problem - Credits Required

Please login or register to access this content.

  • The use of this software is to provide check figures to compare against your own individual work. Accuracy of the check figures is not guaranteed. By purchasing credits and using our software/services, you assume all liability for the use of the software and affirm that you are abiding by your university’s academic policies. Please report any errors above.