1. The Balance Sheet Identity as expressed by the accounting discipline is Assets = Liabilities + Shareholder’s Equity. From the perspective of finance, the Balance Sheet Identity is best expressed as:
A. Assets – Shareholders Equity = Liabilities
B. Assets + Liabilities = Shareholders Equity
C. Liabilities + Shareholder’s Equity = Assets
D. Shareholders Equity = Assets - Liabilities
E. Sales - Net Income = Costs
2. When considering a GAAP based Balance Sheet, the Finance manager will need to consider:
A. The Current Value of the firm’s Assets and Shareholder’s Equity
B. The Firm’s Debt/Equity Ratio
C. The Firms non-cash Expenses
D. All of the above
E. Only A & B