Explain Two Particular Matters for the Presentation and Disclosure Assertion

question 67

Essay

Explain two particular matters for the presentation and disclosure assertion for accounts receivable balances.

---

Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Available-for-Sale Debt Securities

Financial assets acquired primarily for selling in the short term but may be held for a longer period, reported at fair market value on balance sheets.

Premiums

Additional amounts paid over the normal cost or face value, often relating to insurance costs or bond prices.

Amortized

The gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.