Which of the following is a difference between personal financial ...

[Ebrown]

Which of the following is a difference between personal financial statements and business financial statements?
 
  A) Personal financial statements follow the cost principle, whereas business financial statements do not follow the cost principle.
  B) Personal financial statements should present assets at estimated current values, whereas business financial statements should present assets at historical cost.
  C) Personal financial statements are not governed by GAAP, whereas business financial statements are governed by GAAP.
  D) Personal financial statements are prepared for a specific period of time, whereas business financial statements are prepared for a general period.

Question 2

A ledger account contains a complete record of the transaction activity in that account.
 a. True
   b. False
   Indicate whether the statement is true or false

[amanda_14]

Answer to Question 1

B
Explanation: B) Contrary to rules employed in the preparation of business financial statements (specifically, the GAAP cost principle), personal financial statements should present assets at their estimated current values and liabilities at their estimated current amounts.

Answer to Question 2

True