In a Statement of Financial Position, Subclassifications Such as Reserves

question 49

Multiple Choice

In a statement of financial position, subclassifications such as reserves, provisions and inventories are generally reported:

• A)in the financial statement itself.
• B)in the director's report.
• C)as notes to the main financial statements.
• D)These items do not have to be reported at all.

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Definitions:

Industry Averages

Statistical metrics that represent the average performance or output within a particular industry.

Accounts Receivable

Debts that customers owe a business for delivered goods or services awaiting payment.

Average Collection Period (ACP)

A financial metric that measures the average number of days it takes for a company to collect payments from its credit sales.

Sales Projection

An estimate of the future sales figures of a product or service, based on market research, historical data, and other predictive techniques.