Summary Business Accounting

Question:

Parkman Sporting Goods is preparing its annual report for its 2013 fiscal year. The company’s controller

has asked for your help in determining how best to disclose information about the following items:

1. A related-party transaction.

2. Depreciation method.

3. Allowance for uncollectible accounts.

4. Composition of investments.

5. Composition of long-term debt.

6. Inventory costing method.

7. Number of shares of common stock authorized, issued, and outstanding.

8. Employee benefit plans.

Required:

Indicate whether the above items should be disclosed (A) in the summary of significant accounting

policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.



Answer:



1. (B) in a separate disclosure note.

2. (A) in the summary of significant policies note.

3. (C) on the face of the balance sheet.

4. (B) in a separate disclosure note.

5. (B) in a separate disclosure note.

6. (A) in the summary of significant policies note.

7. (C) on the face of the balance sheet.

8. (B) in a separate disclosure note.