What are the possible approaches to presenting a narrative statement of financial position?
A)Entity.
B)Proprietary.
C)Horizontal.
D)Both A and B.

Question

Quizplus · Accepted Answer

The entity approach focuses on the organization as a whole, presenting a consolidated balance sheet of all assets, liabilities, and equity. The proprietary approach presents separate balance sheets for the different types of capital providers, such as shareholders' equity and debt holders' outstanding balances. A combination of both approaches provides a more comprehensive view of an organization's financial position, making D the best choice. The horizontal approach is not a valid option for presenting a narrative statement of financial position.

What Are the Possible Approaches to Presenting a Narrative Statement