Hoffman Electronics is a U.S. company. Which balance sheet format is most likely used by Hoffman?
A) assets + liabilities = reserves
B) assets = liabilities + shareholders' equity
C) noncurrent assets + current assets - current liabilities - noncurrent liabilities = shareholders' equity
D) current assets - current liabilities = fixed assets - noncurrent liabilities = capital and reserves
Question 2
Which of the following statements is most likely true about secrecy and transparency in accounting?
A) Japanese firms are usually as transparent as U.S. firms.
B) German companies tend to be less transparent than British companies.
C) Secrecy and transparency refer to the degree of caution companies display in valuing assets.
D) Companies that list on stock exchanges are highly transparent because of stockholder audits.
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