true or false: ( change each false statement into one that is true)

1. A large cash balance is the best evidence of previous profitable operations.

2. Accounts receivable should be classified as a liability.

3. Machinery used in the business should be recorded at replacement cost.

4. It is not possible to determine changes in the conditions of a business from a single balance sheet.

5. From a single balance sheet, you can find stockholders' equity for a period of time but not for a specific day.

6. Retained earnings should be accounted for as an asset item.