1. The Balance Sheet Identity as expressed by the accounting discipline is Assets = Liabilities + Shareholder’s Equity. From the perspective of finance, the Balance Sheet Identity is best expressed as:

A. Assets – Shareholders Equity = Liabilities

B. Assets + Liabilities = Shareholders Equity

C. Liabilities + Shareholder’s Equity = Assets

D. Shareholders Equity = Assets - Liabilities

E. Sales - Net Income = Costs

2. When considering a GAAP based Balance Sheet, the Finance manager will need to consider:

A. The Current Value of the firm’s Assets and Shareholder’s Equity

B. The Firm’s Debt/Equity Ratio

C. The Firms non-cash Expenses

D. All of the above

E. Only A & B