true or false: ( change each false statement into one that is true) 1. A large c

ID: 2369176 • Letter: T

Question

true or false: ( change each false statement into one that is true)

1. A large cash balance is the best evidence of previous profitable operations.

2. Accounts receivable should be classified as a liability.

3. Machinery used in the business should be recorded at replacement cost.

4. It is not possible to determine changes in the conditions of a business from a single balance sheet.

5. From a single balance sheet, you can find stockholders' equity for a period of time but not for a specific day.

6. Retained earnings should be accounted for as an asset item.

1.False. A large retained earnings balance is the best evidence of previous profitable opertations.

2.False. Accounts receivable should be classified as an asset.

3.False. Machinery used in the business should be recorded at historical cost.

4.True. You would need to see at least the the prior year's balance sheet for comparison.

5.False. From a single balance sheet, you can find stockholders' equity for a specific day but not for a period of time.

6.False. Retained earnings should be accounted for as an equity item.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.