BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements are true regarding the balance sheet?one cannot determine the true fair market value of a company by reviewing its balance sheetcertain internally generated assets, such as a trademark, are not reported on a company’s balance sheeta balance sheet shows only the ending balances, in a summarized format, of all balance sheet accounts in the accounting system as of a particular date
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none are true
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statements 1 and 2 only are true
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statements 2 and 3 only are true
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all statements are true
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Explanation:
Detailed explanation-1: -The correct answer is d. A balance sheet is a statement that provides information regarding the assets and liabilities of a company. Internally generated assets are not recorded in the balance sheet under US GAAP.
Detailed explanation-2: -Reserve Capital is not shown under the heading “Share Capital” in a balance sheet.
Detailed explanation-3: -Answer and Explanation: The correct option is (c) Retained earnings statement.
Detailed explanation-4: -Expenses are not a part of a Company‘s balance sheet.
There is 1 question to complete.