In connection with a balance sheet, assets: 14 points] A. Will be collected in cash within the operating cycle or twelve months, whichever is longer B. Are the difference between total liabilities and total shareholders' equity. C. Must be greater than the cost of deht and equity capital D. Have future economic benefit, based on expected future cash flows 2 2. In connection with a balance sheet, liabilities: 12 points) A. Will be paid in cash within the operating cycle or twelve months, whichever is longer B. Are costs that have been paid in cash. C. Are obligations or debts of the company used to finance the company's assets. D. Have future economic benefit, based on expected future cash flows. In connection with a balance sheet, sharebolders equity: (2 points) A. Is positive if, total liabilities exceed total asset B. Is the owners' investment in the company used to finance the company's assets. C. Is the result of paying dividends to or repurchasing shares from the company's shareholders D. Is synonymous with the company's market equity capitalization. In connection with a balance sheet, liabilities (debt) and shareholders' choy each have a cost and: [4 points) A. Generally, the cost of debt is less than the cost of equity because equity is riskier than debt. B. Generally, the cost of equity is less than the cost of deht because debt is riskier than equity. c. Generally, the cost of debt and equity are the same at the optimal capital structure D. Generally, the cost of debt is the investors' required rate of return and the cost of equity is the associated rates of interest Page 1 of 8