Question

estimates the firms worth on a given date; built on the accounting equation.
statement of cash flows
income statement
balance sheet
question 2 (1 point)
compares the firms expenses against its revenue over a period of time to show its net income.
shareholders equity
balance sheet
income statement
question 3 (1 point)
calculate the current ratio from the following: current assets $394598, long-term liabilities $234700, current liabilities $98780.
.25:1
3.99:1
1.68:1

Explanation:

Step1: Match description to financial statement

The first question describes a statement based on the accounting equation ($\text{Assets} = \text{Liabilities} + \text{Equity}$) that measures firm worth on a date, which is the Balance Sheet.

Step2: Match description to financial statement

The second question describes a statement comparing revenue and expenses over time to find net income, which is the Income Statement.

Step3: Calculate current ratio

Current ratio formula: $\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$
$\text{Current Ratio} = \frac{394598}{98780} \approx 3.99$

Answer:

1. Balance Sheet
2. Income statement
3. 3.99:1