Financial Statement Reporting: The Balance Sheet
On the balance sheet, the CPA is concerned with the accounting for and reporting of assets, liabilities, and stockholders’ equity.
What valuation is used for assets?
Assets are recorded at the price paid plus related incidental costs (e.g., insurance, freight). If an asset is acquired for the incurrence of a liability, the asset is recorded at the present value (discounted value) of the payments.
Unearned discounts (except for cost or quantity), finance charges, and interest included in the face of receivables should be deducted from receivables to derive the net receivable.
Some of the major current and noncurrent assets include:
What is the difference between an assignment and ...