What are some of the techniques of disclosure for the balance sheet?
Various techniques that are used for disclosure of balance sheet are as follow:
A principle in accounting that states that a business entity must provide complete information regarding each transaction having a financial nature in the financial reports is known as full disclosure.
Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reported in the statement, if at all. Assume that net income is reported as $90,000.
(a) Accounts receivable increased from $34,000 to $39,000 from the beginning to the end of the year.
(b) During the year, 10,000 shares of preferred stock with a par value of $100 per share were issued at $115 per share.
(c) Depreciation expense amounted to $14,000, and bond premium amortization amounted to $5,000.
(d) Land increased from $10,000 to $30,000.
5. A company has purchased a tract of land and expects to build a production plant on the land in approximately five years. During the 5 years before construction, the land will be idle. Under IFRS, the land should be reported as:
(a) land expense.
(b) property, plant, and equipment.
(c) an intangible asset.
(d) a long-term investment.
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