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1.
Balance sheets balance _______.
Assets with liabilities. Equity, debt, taxes, and income are all included in assets and liabilities.
2.
When assets outweigh liabilities and shareholder equity on a balance sheet, the sheet has not been constructed correctly.
True. Balance sheets balance the two sides so that all assets and their sources of payment are accounted for.
3.
If you want to learn the kinds of assets a company is buying, you can find them on the balance sheet.
True. The balance sheet will identify assets that the company has bought.
4.
If the total liabilities of a company are 2 million dollars, and total assets are 5 million dollars, how much is shareholder equity?
3 million dollars. Shareholder equity is the difference between total assets and total liabilities. When creating a balance sheet, however, you must include shareholder equity with liabilities.
5.
Current liabilities are those that are paid ______.
Within one year. This is the accepted time limit.
6.
The company E-Publisher.com owns exclusive rights to its material. This copyright is an asset.
True. Copyright is an intangible asset.
7.
Shareholder equity is ________.
The amount of capital invested by the owners. This is evidenced by stock ownership.
8.
Which of the following is not a current asset?
Stock. Stock is not a current asset. On the balance sheet, it is a liability.
