Information on the balance sheet is categorized into
A)operating, investing and financing activities.
B)current and non-current elements.
C)continuing and discontinued activities.
D)profit or loss and other comprehensive income.

Question

Quizplus · Accepted Answer

The information on the balance sheet is categorized into current and non-current elements, which includes assets, liabilities, and equity. Current elements are those that are expected to be converted into cash within one year or one operating cycle, while non-current elements represent assets and liabilities that will be utilized or owed beyond the current period. Option A refers to the categories of cash flows on the statement of cash flows, not the balance sheet. Option C pertains to the distinction between ongoing and discontinued operations, which is disclosed in the income statement. Option D refers to the components of comprehensive income, which is not directly related to the classification of balance sheet items.

Information on the Balance Sheet Is Categorized into