BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance Sheet
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Income Statement
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Statement of Cash Flows
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Detailed explanation-1: -Format of statement IAS 1 does not prescribe the format of the statement of financial position. Assets can be presented current then non-current, or vice versa, and liabilities and equity can be presented current then non-current then equity, or vice versa.
Detailed explanation-2: -A balance sheet summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time (as indicated at the top of the statement). It is one of the fundamental documents that make up a company’s financial statements.
Detailed explanation-3: -Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus, cash is always presented first, followed by marketable securities, then accounts receivable, then inventory, and then fixed assets.