If a publicly traded company is trying to appear attractive to external users,the company is most likely to understate which of the following on its balance sheet?
A)Assets.
B)Liabilities.
C)Retained earnings.
D)Contributed capital.

Question

Quizplus · Accepted Answer

If a company is trying to appear attractive to external users, it may understate its liabilities on the balance sheet in order to make the company appear less risky or more financially stable. Understating assets, retained earnings or contributed capital would not have the same effect on external users' perceptions of the company's financial health.

If a Publicly Traded Company Is Trying to Appear Attractive