Financial Reporting and Analysis Q101

0. Which of the following statements is most accurate about balance sheets?

A
Under US GAAP, intangibles are reported at fair value.
B
Under US GAAP, a classified balance sheet presents non-current liabilities after current liabilities.
C
In a liquidity-based presentation, intangible assets are ordered above bank deposits

Answer
Comment
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Option : B
Explanation : A is incorrect because under US GAAP, intangible assets are reported using the cost model. C is incorrect because in a liquidity-based presentation, assets are ordered in decreasing order of liquidity. Less liquid items appear near the bottom of the listing.

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