Which of the following statement of financial position classifications would normally require the greatest amount of supplementary disclosure?
A) Current assets
B) Current liabilities
C) Plant assets
D) Long-term liabilities

Question

Quizplus · Accepted Answer

Long-term liabilities typically require the greatest amount of supplementary disclosure as they involve long-term commitments and their terms and conditions may affect the financial position and performance of the company for an extended period of time. This may require additional disclosure such as interest rates, maturity dates, collateral, and covenants. Current assets and liabilities may require some disclosure, but they are typically straightforward and do not involve significant long-term commitments. Plant assets may require some disclosure, particularly about depreciation methods and useful lives, but this is generally less than that required for long-term liabilities.

Which of the Following Statement of Financial Position Classifications Would