Using the account format to prepare a balance sheet is
A)as acceptable as using a report format.
B)an unacceptable method under GAAP rules.
C)permitted as long as the company has $1 million or less in total assets.
D)permitted as long as the company has $1 million or less in total revenues.
E)used primarily by companies following IFRS.

Question

Quizplus · Accepted Answer

Using the account format to prepare a balance sheet is as acceptable as using a report format. While the report format is more commonly used, both formats are acceptable under GAAP rules. There is no requirement for a specific format based on the size of the company's assets or revenues, and the choice of format does not depend on whether the company follows GAAP or IFRS.

Using the Account Format to Prepare a Balance Sheet Is