Which of the following is a limitation of the balance sheet?
A)Many items that are of financial value are omitted.
B)Judgments and estimates are used.
C)Current fair value is not reported.
D)All of these

Question

Quizplus · Accepted Answer

All of the options listed are limitations of the balance sheet. Many items that are important, such as intangible assets, are not reported on the balance sheet. Judgments and estimates are used to determine values for certain items, and current fair value may not necessarily reflect the true value of an item.

Which of the Following Is a Limitation of the Balance