Companies that use GAAP
A) do not have any guidelines as to what should be reported on their balance sheet.
B) generally reported current assets before non-current assets on their balance sheet.
C) often offset assets against liabilities and shown net assets and net liabilities on their balance sheet rather than the underlying detailed line items.
D) may report all their assets on their balance sheet at fair value.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) requires that companies report their current assets before non-current assets on their balance sheet. This helps ensure consistency in financial reporting across companies. Option A is incorrect as GAAP provides guidelines for what should be reported on a company's balance sheet. Option C is incorrect as GAAP does not require companies to offset assets and liabilities on their balance sheet. Option D is incorrect as fair value reporting is only required for certain assets under GAAP and not all assets.

Companies That Use GAAP