Which of the Following Statements Concerning Financial Statement Presentation Is

question 93

Multiple Choice

Which of the following statements concerning financial statement presentation is false?

• A)Intangibles are reported separately under Intangible Assets.
• B)The balances of major classes of assets may be disclosed in the footnotes.
• C)The balances of the accumulated depreciation of major classes of assets may be disclosed in the footnotes.
• D)The balances of all individual assets, as they appear in the subsidiary plant ledger, should be disclosed in the footnotes.

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Definitions:

General Journal

A fundamental accounting record where all transactions are initially documented through journal entries in chronological order.

Merchandise Credit

A type of voucher issued by retailers to a customer when returned merchandise cannot be refunded in cash, used for future purchases.

Reversing Entries

Journal entries made at the beginning of an accounting period to negate or reverse certain adjusting entries made in the previous period for simplification.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.