GAAP and the balance sheet. One of your friends started a business in 2008. At the end of the first year, December 31, 2008, he prepared the following balance sheet. Give three examples from the statement that indicate the statement was not prepared according to GAAP. (LO 1,3)
|
Assets |
Liabilities |
||
|
Cash |
$2,000 |
Notes payable |
$ 1,ooo |
|
Revenues |
1000 |
Expenses |
1,000 |
|
Total assets |
$3,000 |
Total liabilities |
2,000 |
|
Common stock |
1,500 |
||
|
Total liabilities & shareholders equity |
$3,500 |