A ratio near is good. The balance sheet does not report items that can not be objectively determined. The following valuation principles are used: Short-term investments at fair value Accounts receivable at net realizable value 10 Long-Term Investments Long-term investments may be: Investments in securities bonds, stock Investments in fixed assets land not used in operations Investments set aside in special funds e.
Prepare a classified balance sheet using the report and account formats. Examples include: Issuance of common stock to purchase assets. Issuance of debt to purchase assets.
Additional Information Reported Significant financing and investing activities that do not affect cash are reported in either a separate schedule at the bottom of the statement of cash flows or in the notes.
Used in conjunction with Net Income to help assess the amounts, timing, and uncertainty of cash flows.