Which one of the following statements is true about an organization's balance sheet? The balance sheet summarizes revenues and expenses for an accounting period. Total assets must equal total liabilities on the balance sheet. The balance sheet shows the financial position of a business on a specific date. Total liabilities minus owners' equity equals total assets on the balance sheet.

The balance sheet shows the financial position of a business on a specific date.

Which one of the following statements about the balance sheet is correct? Change in asset and liability valuation from historical cost to fair value has no effect on the value of shareholders' equity. The balance sheet must always balance, but an exception is that the balance sheet will not balance if net worth is a negative number. Net worth is positive whenever the value of assets exceeds the value of liabilities and negative if the value of liabilities exceeds the value of assets. The balance sheet contains important financial information about net worth and assets, both which indicate the source of an organization's funding.

Net worth is positive whenever the value of assets exceeds the value of liabilities and negative if the value of liabilities exceeds the value of assets.

An important liquidity measure for a business is its working capital. Working capital is equal to Total assets minus total liabilities. Total assets minus current assets. Owners' equity minus current liabilities. Current assets minus current liabilities.

Current assets minus current liabilities.

If an organization directly securitized its income-producing assets without using a special purpose vehicle (SPV), investors Would avoid investing in the organization altogether. Should examine individual borrowers' payments to the organization. Must consider the overall credit risk of the organization. Should not consider the overall credit risk of the organization.

Must consider the overall credit risk of the organization.

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