True or false:
1.A large cash balance is the best evidence of previous profitable operations.
2.Accounts receivable should be classified as a liability.
3.Machinery used in the business should be recorded at replacement cost.
4.It is not possible to determine changes in the conditions of a business from a single balance sheet.
5.From a single balance sheet, you can find stockholders' equity for a period of time but not for a specific day.
6.Retained earnings should be accounted for as an asset item.