121.The year-end balance of the stockholders' equity account appears in
a.both the retained earnings statement and the income statement
b.only the retained earnings statement
c.both the retained earnings statement and the balance sheet
d.both the retained earnings statement and the statement of cash flows
122.A financial statement user would determine if a company was profitable or not during a specific period of time byreviewing the
a.income statement
b.balance sheet
c.statement of cash flows
d.statement of retained earnings
123.If a shareholder wanted to know how money flowed into and out of the company, which financial statement wouldthe shareholder use?
a.income statement
b.statement of cash flows
c.balance sheet
d.statement of retained earnings
124.The assets section of the balance sheet normally presents assets in
a.alphabetical order
b.the order of largest to smallest dollar amounts
c.the order in which they will be converted into cash or used in operations
d.the order of smallest to largest dollar amounts
125.All of the following statements regarding the ratio of liabilities to stockholders' equity are true
except
a.a ratio of 1 indicates that liabilities equal stockholders' equity
b.sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity
c.the higher this ratio, the better able a business is to withstand poor business conditions and pay creditors
d.the lower this ratio, the better able a business is to withstand poor business conditions and pay creditors