Each of the Following Must Be Disclosed in the Financial

question 145

Multiple Choice

Each of the following must be disclosed in the financial statements, except:

• A) The total amounts of long-term debt maturing in each of the next five years.
• B) The company's debt ratio and interest coverage ratio for the current year.
• C) Provisions, when a reasonable possibility exists that a material loss has been incurred.
• D) The fair value of noncurrent liabilities when this value is significantly different from the amount shown in the statement of financial position.

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Definitions:

Invoice

Bill for goods or services provided by the seller to the purchaser.

Bill

A short-term debt instrument issued by a government as a means of borrowing money with a maturity of less than a year.

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.