Net Income$ 50
6.How is it possible that Haloid reports “property” in two different places on its balance sheet?
7.Comment on the following statement: “On December 31, 2010, Haloid’s accounts payable exceeds its cash by $5. If Haloidneeds additional money to pay its accounts payable, it can use the $125 stashed in its retained earnings”.
9.Explain the concept of liquidity.
10.Give an example of a prepaid expense. Why would a company use this account?
11.What type of assets are included in short-term investments?
12.What is unique about the way plant and equipment appear on the balance sheet?
13.Describe how the equity sections of balance sheets differ for each of the three types of business entities.
14.Why would a company use a notes receivable account?
15.What is the account,
Accounts Payable, used for?
16.Describe how the amount of net income relates to the balance sheet.
17
.Where in a company’s financial statements would you locate the ‘book value’ of the company?