Which of the following is not a problem inherent in balance sheet presentation?
A)Most assets are valued at cost.
B)Varying methods are used for asset valuation.
C)Not all items of value to the firm are included as assets.
D)Liabilities related to contingencies may not appear on the balance sheet.
E)The owners' interest will be indicated.

Question

Quizplus · Accepted Answer

This statement is not a problem inherent in balance sheet presentation but rather a benefit. The owners' interest is shown on the balance sheet, which helps investors and stakeholders understand the proportion of the company that is owned by shareholders.

Which of the Following Is Not a Problem Inherent in Balance