To determine the source of a company's noncurrent assets,on which financial statement will you look?
A)Income statement only
B)Balance sheet only
C)Both the balance sheet and the income statement
D)Both the income statement and the statement of retained earnings

Question

Quizplus · Accepted Answer

The source of a company's noncurrent assets is reported on the balance sheet as these are long-term assets that are expected to be used or consumed by the company for more than one year. The income statement reports the company's revenues and expenses during a period, but it doesn't provide information about the source of assets. The statement of retained earnings shows how the company's net income is distributed, but it also doesn't provide information about the source of assets, which is reported on the balance sheet.

To Determine the Source of a Company's Noncurrent Assets,on Which