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Week Five Individual Discussion Questions

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Q Reply to the following instructor's general discussion question(s) according to the discussion board guidelines. Comparative balance sheets contain important information used by external (and internal) users of financial statements. From that information, users can calculate important financial ratios. Appendix 5A of Chapter 5 addresses four broad categories of financial ratios. Choose one such category and discuss it. What does it measure? Which specific class of users would be interested in these ratios?

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Chapter 5, Question 29 What are some of the techniques of disclosure for the balance sheet? (I). Parenthetical explanation - It involves disclosing additional description or information following the balance sheet item. (II). Notes - The firm show notes for additional information when it won't be able to show that information conveniently with the item. (III). Cross-reference and contra items - It show those items which have cross-reference means the direct relationship between the liability and assets in the balance sheet.