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When preparing the financial statements for a company, the factory equipment is valued at $800,000 as a non-current asset on the balance sheet. This is because while the factory equipment was purchased for $1 million, the company still owes $200,000 to the supplier of the factory equipment ($800,000 = $1,000,000 – $200,000).   Which general feature of financial statements from NZ IAS 1 has been violated?     a. Going concern b. Offsetting c. Consistency of presentation d. Materiality and aggregation e. Accrual accounting

When preparing the financial statements for a company, the factory equipment is valued at $800,000 as a non-current asset on the balance sheet. This is because while the factory equipment was purchased for $1 million, the company still owes $200,000 to the supplier of the factory equipment ($800,000 = $1,000,000 – $200,000).   Which general feature of financial statements from NZ IAS 1 has been violated?     a. Going concern b. Offsetting c. Consistency of presentation d. Materiality and aggregation e. Accrual accounting

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When preparing the financial statements for a company, the factory equipment is valued at $800,000 as a non-current asset on the balance sheet. This is because while the factory equipment was purchased for $1 million, the company still owes $200,000 to the supplier of the factory equipment ($800,000 = $1,000,000 – $200,000).

 

Which general feature of financial statements from NZ IAS 1 has been violated?

 

 

a. Going concern

b. Offsetting

c. Consistency of presentation

d. Materiality and aggregation

e. Accrual accounting

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