Which of the Following Statements Is CORRECT

question 108

Multiple Choice

Which of the following statements is CORRECT?

• A) The balance sheet for a given year, say 2012, is designed to give us an idea of what happened to the firm during that year.
• B) The balance sheet for a given year, say 2012, tells us how much money the company earned during that year.
• C) The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared 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 as reported on the balance sheet.
• E) The assets section of a typical industrial 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.

---

Definitions:

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud, emphasizing unconscious motivations, childhood experiences, and the structure of the psyche in personality development.

Sexually Frustrated

The feeling of dissatisfaction from the lack of fulfilling sexual activity.

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious desires or fears.

Collective Unconscious

A theory developed by Carl Jung, suggesting that all human beings share a universal set of memories and ideas inherited from our ancestral past.