Financial Reporting Problem Essay Example | Topics and Well Written Essays - 1000 words

Financial Reporting Problem - Essay display caseet, the receivables should then be reported, instituteing those items on the balance sheet that are expected to yield cash in the near future like the pay expenses or the inventory. Further, the money owed to the corporation by its debtors follows closely, being the lend receivables reported for the period, that they will expect to be paid in the near future. To this end, cash and cash equivalents set aside the liquid assets of the company and should pack therefore have been outlined last in the balance sheet.The companys assets are classified based on their liquidity and on whether they provide long terminus or short-term service to the company. On the aspect of liquidity, it is plausible to tune that the least liquid assets have been place together, including goodwill, long investments and deferred tax assets. On the other hand, receivables, which are more liquid are pose in the same class, which details the amounts of cash that the company anticipates to receive from debtors and operating activities of the company. These are items like the prepaid expenses, the deferred tax assets and inventory. Still, in terms of liquidity, it is notable to state that the most liquid assets have been recognized and placed in the same category in the uppermost part of the balance sheet. In terms of the finale of service anticipated, the companys assets are overly classified in terms of whether they provide long-term usefulness or help the company meet its short-term obligations. In this perspective, it would be important to note that the fixed or non-current assets have been classified in the same way, while the current assets are also placed in the same category.Cash equivalents are a class of assets on the balance sheet, which represent a category of investments on which the company is able to derive term payments, mostly known as interest. This amount of money paid as interest is calculated as a percentage of th e money committed as an investment by the company,