Purpose: $1.$ Understand the information provided by the balance sheet. $2.$ Identify asset, liability, and stockholders' equity accounts reported on the balance sheet. $3.$ Understand the accounting equation.Balance Sheet December $31,20$X$3$ and $20$X$2$Common stock, par value $\backslash$$$1,$ authorized, $\backslash (1,000,000\backslash )$ shares; issued, $5,000$ shares in $2016$Less accumulated depreciation and amortizationTotal liabilities and stockholders' equity The balance sheet reports assets and the amount of financing from liabilities and stockholders' equity as of a specific date. This relationship represents the accounting equation, write the formula in the box below:

Assets are items of value that a corporation owns or has a right to use. Typical asset accounts include cash, accounts receivable, inventory, equipment, buildings, and land.

Liabilities are amounts owed to creditors; the amount of debt owed to third parties. Typical liability accounts include accounts payable, wages payable, notes payable, and bonds payable.

Stockholders' equity is the portion of assets the owners own free and clear. Stockholders' equity may also be referred to as shareholders' equity or owners' equity. Typical stockholders' equity accounts include:

$1.$ Identify the $20$ X $3$ accounting equation amounts for Cool Lope, Inc. using the information above.

Assets $\backslash (\backslash$quad $\backslash )$ Liabilities $\backslash (\backslash$quad $\backslash )+$ Stockholders' Equity

$2.$ Assets can either be financed with

or

$3.$ Will the accounting equation hold true for every corporation? $($Yes $/$ No $/$ Can't tell$)$ Why?

$4.$ Cool Lope, Inc. is primarily financed with $($liabilities $/$ stockholders' equity$).$ How can you tell?

$5.$ What is the definition of a current asset?

$6.$ The following is a current asset $($inventory $/$ delivery truck $/$ taxes payable$).$

$7.$ What is the Definition of a Current Liability?

$8.$ The following is a current liability $($bond $/$ accounts payable $/$ accounts receivables$).9.$ An example of a long$-$term assets is $($common stock $/$ equipment $/$ building $/$ prepaid expenses$).$ Select all that apply.

$10.$ What is the definition of retained earning?