Which One of the Following Statements Concerning the Balance Sheet

question 44

Multiple Choice

Which one of the following statements concerning the balance sheet is correct?

• A)Total assets equal total liabilities minus total equity.
• B)Net working capital is equal total assets minus total liabilities.
• C)Assets are listed in descending order of liquidity.
• D)Current assets are equal to total assets minus net working capital.
• E)Shareholders' equity is equal to net working capital minus net fixed assets plus long-term debt.

Grasp the accounting treatment of postretirement benefit plans, including the recognition of actual return on plan assets.

Know the effects of pension plan economics on balance sheets and income statements.

Understand the components of pension expense and how they are calculated.

Recognize differences in pension accounting under IFRS and U.S. GAAP.

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