Concept explainers
(1)
This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and
Financial statement:
Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of
Financial Disclosures:
Financial disclosure refer to all material, significant and relevant information concerning the reporting organization that are essential to understand the financial statements of the organization in its entirety and help evaluating the performance and the financial health of the said organization. They are either provided on the face of the financial statement or as notes to the financial statements as supporting schedules.
To identify: The classification category of assets and liabilities used by the Company P.
(2)
To describe: the reason for the investments is shown as current assets in the balance sheet of Company P.
(3)
To explain: The current liability “Accrued and other current liabilities”.
(4)
To describe: The purpose of the disclosure notes.
(5)
To identify: The method of
(6)
To identify: The events or related party transactions that Company P reports in its disclosure notes.
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
INTERMEDIATE ACCOUNTING
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education