Test bank for accountng - Study guides, Class notes & Summaries

In my experience, the values reported for assets in a balance sheet can be a source of confusion for business managers and investors, who tend to put all dollar amounts on the same value basis. In their minds, a dollar is a dollar, whether it’s in accounts receivable, inventory, property, plant and equipment, accounts payable, or retained earnings. But as a matter of fact, some dollars are much older than other dollars. The dollar amounts reported in a balance sheet are the result o...