The accounting equation is Assets = 2. The Sweet Smell of Success Fragrance Company borrowed $60,000...

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The accounting equation is Assets = 2. The Sweet Smell of Success Fragrance Company borrowed $60,000 from the bank to be paid back in five years and used all of the money to purchase land for a new store. Sweet Smell's balance sheet would show this as: A. $60,000 under Land and $60,000 under Notes Payable (long-term). B. $60,000 under Depreciation Expense and $60,000 under Notes Payable (long- term). c. $60,000 under Land and $60,000 under Notes Receivable (long- term). D. $60,000 under Other Assets and $60,000 under Other Liabilities. 3. A complete set of financial statements includes the following four reports (list the report name): A. B. C. D. 4. True or False? Current assets are cash, accounts receivable, inventory, and buildings. 5. True or False? Current liabilities are amounts owed that will be paid within the next 24 months. The accounting equation is Assets = 2. The Sweet Smell of Success Fragrance Company borrowed $60,000 from the bank to be paid back in five years and used all of the money to purchase land for a new store. Sweet Smell's balance sheet would show this as: A. $60,000 under Land and $60,000 under Notes Payable (long-term). B. $60,000 under Depreciation Expense and $60,000 under Notes Payable (long- term). c. $60,000 under Land and $60,000 under Notes Receivable (long- term). D. $60,000 under Other Assets and $60,000 under Other Liabilities. 3. A complete set of financial statements includes the following four reports (list the report name): A. B. C. D. 4. True or False? Current assets are cash, accounts receivable, inventory, and buildings. 5. True or False? Current liabilities are amounts owed that will be paid within the next 24 months.

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