When the change in the balance sheet account for property,plant,and equipment does not reconcile with the account change included in the statement of cash flows because of a write-off due to impairments,the analyst would most likely learn of this through examination of the
A)notes to the financial statements.
B)balance sheet.
C)capital stock account.
D)investments account.

Question

Quizplus · Accepted Answer

A write-off due to impairments should be disclosed in the notes to the financial statements, where the analyst can find details about the write-off, such as the amount and the reason for the impairment. The balance sheet may not provide enough information, while the capital stock and investments accounts are not likely to be relevant to this specific issue.

When the Change in the Balance Sheet Account for Property,plant,and