Question

Which of the following should be disclosed in the balance sheet or the notes to the financial statements? A : amount of depreciation and amortization expense for the period B : balances of the major classes of assets C : depreciation and amortization methods used D : all of the choices are correct

Answer 1

Answer:

The correct option is (D)

Explanation:

The balance sheet reflects the position of an organization in terms of assets and liabilities as on a particular date. All crucial financial information like methods of inventory valuation, depreciation method valuation of intangible assets cannot be reported in balance sheet. These are reported in notes to financial statements or footnotes.

Depreciation and amortization expense are reported on the asset side of balance sheet as a deduction from gross value of depreciable property to arrive at net value.

Asset balances are also reported in the balance sheet. Depreciation and amortization methods are reported in footnotes or notes to financial statements.

Therefore, all answer options are correct.