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  1. business
  2. accounting
  3. you are considering purchasing stock in a company

You are considering purchasing stock in a company and looked online to gather information about...

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Accounting

You are considering purchasing stock in a company and looked online to gather information about the company. Under the Financial Information page you found the companys balance sheet. After reading the balance sheet you realized that a balance sheet provides you with

a. information to support how assets equal liabilities.
b. the profit or loss of the company for the accounting period.
c. the change in the cash account attributed to operating activities.

d. the financial position of the company on a particular date, including assets, liabilities and shareholders' equity.

Your uncle has passed away and bequeathed you a large sum of money which you have decided to invest in a business. You confer with a business broker for advice regarding a company to purchase and she presents you with four businesses to evaluate. The business with the highest owners equity is

a. A printing company: Assets $11.2 million, Liabilities $10
b. A car dealership: Assets $33.2 million, Liabilities $30.1 million
c. A bakery: Assets $4.7 million, Liabilities $1.1 million
d. A computer software company: Assets $3.2 million, Liabilities $2.1 million

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