In Recent Years, the More Common Format of Layout for the Financial

question 35

Multiple Choice

In recent years, the more common format of layout for the financial statement of position is

• A)Horizontal format.
• B)Parallel format.
• C)'T' format.
• D)Vertical or narrative format.

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Definitions:

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Operating Expenses

The ongoing costs for running a business that are not directly tied to the production of goods or services, such as rent, utilities, and salaries.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferrals, and accruals to calculate cash flow from operating activities.

Sale of Equipment

a transaction where a business disposes of machinery or equipment, typically recorded as an incoming cash flow or gain/loss in financial statements.