In Terms of Presentation, the Main Difference Between a Balance

question 125

Multiple Choice

In terms of presentation, the main difference between a balance sheet prepared under accounting standards for private enterprises (ASPE) and a statement of financial position prepared under international financial reporting standards (IFRS) might be:

• A)the time period being covered.
• B)the level of detail presented.
• C)the items included.
• D)the ordering of the assets and liabilities.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not affect future business decisions.

Irrelevant Costs

Costs that will not be affected by a decision and should not be considered when making that decision.

Periodic Basis

A method of accounting where financial and inventory records are updated at regular, fixed intervals.

Resale Value

The expected price at which an asset can be sold in the market after it has been used.