Which of the Following Statements Best Describes the Balance Sheet

question 42

Multiple Choice

Which of the following statements best describes the balance sheet?

• A) The balance sheet for a given year is designed to give us an idea of what happened to the firm during that year.
• B) The balance sheet for a given year tells us how much money the company earned during that year.
• C) For most companies, the market value of the stock equals the book value of the stock as reported on the balance sheet.
• D) A balance sheet lists the assets that will be converted to cash first, and then goes on down to list the longest-lived ones last.

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