1. The financial position of a business may be expressed as which one?:
1. Assets equal revenues minus expenses.
2. Assets minus liabilities equal owners’ equity.
3. Assets plus liabilities equals owners’ equity.
4. Assets plus owners’ equity equals liabilities.
2. Construct an Income Statement for INSTA Corporation given the following information. $5 million assets ( of which $500,000 cash and $1.5 long term investments); $3 million debt (of which 30 % is short term); $1.2 million bond payable 2020; $500,000 land; and $750,000 retained earnings.