a) allowance should be deducted from the accounts receivable b) Merchandise held on consignment should not appear on the consignee's balance sheet but should be disclosed on notes to financial statements (c) Advances received on sales contract are normally a current liability and is shown as current liability as unearned revenue (d) Cash surrender value of life insurance should be shown as a long-term investment. (e) Land should be reported in property, plant, and equipment unless held for investment. (f) Merchandise out on consignment should be shown among current assets under the heading of inventories. since title to the goods passes only when delivered (g) Franchises should be itemized in a section for intangible assets.