EQL213 1

_____ expense refers to an expense that is recognized on the books before it has been paid.

• Normal

• Accrued

Accrued income is recorded in the period it is incurred.

• True

• False

Deferred income tax is tax that is payable in the future.

• True

• False

Preferred stock is a type of stock that offers different rights to shareholders than common stock. 

• True

• False

Is the balance sheet of the company Apple Inc. balanced?

• Yes

• No

Liability is one of the main components that an investor should look for.

• True

• False

One should always analyze the figures of Property and Equipment.

• True

• False

 Important components of a balance sheet are cash, accounts receivable, property, plant, equipment, and other liabilities.

• True

• False

According to the balance sheet of the company, one can invest in Apple Inc.

• True

• False