Question

Noncurrent assets must be reported before current assets in a balance sheet reported by a company using:

a) IFRS.
b) U.S. GAAP.
c) Both U.S. GAAP and IFRS.
d) Neither U.S. GAAP nor IFRS.

Answer 1

Noncurrent assets must be reported before current assets in a balance sheet reported by a company using both U.S. GAAP and IFRS.

Step-by-step explanation:

Noncurrent assets must be reported before current assets in a balance sheet reported by a company using Both U.S. GAAP and IFRS. Both U.S. GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) require noncurrent assets, such as long-term investments or property, plant, and equipment, to be reported before current assets, such as cash or accounts receivable. This order is important as it helps to provide a clear and accurate picture of a company's financial health.