GK
ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The correct order in which these are to appear in the balance sheet :- 1. Advance salary 2. Copyright 3. Preliminary expenses 4. Loose tools
|
|
1, 2, 3, 4
|
|
|
2, 4, 1, 3
|
|
|
3, 2, 4, 1
|
|
|
4, 2, 1, 3
|
Explanation:
Detailed explanation-1: -Now, you might be wondering which account doesn’t appear on a balance sheet. The answer is: income. Income is not an asset, liability, or equity account, so it doesn’t appear on a balance sheet. Instead, income is reported on another financial statement called the income statement.
Detailed explanation-2: -When a patent is acquired, Generally Accepted Accounting Procedures requires that it be included on the business’s balance sheet at its fair value. “Fair value” is the cost to acquire the patent. If the business purchased the patent, it should be valued at the cost to acquire the patent from the former owner.
There is 1 question to complete.