Question 18

When preparing the current asset section of the balance sheet under GAAP you notice that two of the four bank accounts owned by the company have negative balances. Where would you look to determine how these balances should be reported?

A) American Banking Association rules and pronouncements

B) FASB Codification System

C) IFRS pronouncements since negative balances are actually liabilities

D) None of the above; the balances would be netted together on one line of the Balance Sheet