The balance sheet will have historical values and that will have an impact on the ratios of the firm.

Question

Quizplus · Accepted Answer

The historical values on the balance sheet will impact the ratios of the firm since the calculations depend on the values of assets, liabilities, and equity at a specific point in time. If the values on the balance sheet are outdated or not reflective of the current market conditions, the ratios may not accurately reflect the financial health of the firm.

The Balance Sheet Will Have Historical Values and That Will