Following is a condensed asset section of the December 31, 2009, balance sheet of Green Realty Corp.,

Question:

Following is a condensed asset section of the December 31, 2009, of Green Realty Corp., a real estate investment trust that owns and manages real estate properties. Many of the company’s properties are located in New York. Amounts are expressed in thousands.
Commercial Real Estate Properties:
Land...................................................................................... $ 1,436,569
Buildings and Improvements................................................. 5,919,746
Other...................................................................................... 1,266,181
$ 8,622,496
Less: Accumulated Depreciation............................................ (381,510)
Total Investments in Real Estate............................................ $ 8,240,986
Assets Held for Sale................................................................ 41,568
Other Assets
Cash......................................................................................... 45,964
Restricted cash......................................................................... 105,475
Tenant receivables.................................................................... 49,015
Related party receivables......................................................... 13,082
Other assets.............................................................................. 2,933,988
Total Assets............................................................................$11,430,078
Required:
(a) Green Realty Corp.’s is unusual in that it begins with Investments in Real Estate instead of Current Assets. Why do you believe the company uses this format for the asset section of its For what ‘‘restricted’’ purposes might Green Realty hold cash?
(c) If most real estate companies use this format for the asset section of their balance sheets, what accounting principle would Green Realty violate by using a different format?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...