In response to financial statements analysis, Celateela Moonn, an UBM MBA 610 student, made the following staments: Statement 5: Assets are reported on the balance sheet at their current market value. Statement 6: Assets are listed on the balance sheet in order of liquidity and liabilities are listed in order of maturity. Statement 7: According to the revenue recognition principle, companies are required to record revenue when cash is received as this provides the most objective evidence for the auditors. Statement 8: Under accrual accounting principles, the cost of inventory should be reported as an expense in the income statement when it is sold, regardless of when it was purchased. With respect statements 5 and 6, is Moonn correct?

Answer rating: 100% (QA)

Lets evaluate the statements made by Celateela Moonn Statement 5 Assets are reported on th... View the full answer