Which item below would not be a quality of financial reporting issue related to the balance sheet?
A)Mismatching the type of debt (short or long-term) used to finance assets.
B)Discretionary expenses.
C)Overvaluation of assets.
D)Off-balance sheet financing.

Question

Quizplus · Accepted Answer

Discretionary expenses are not related to the balance sheet as they are expenses that can be controlled and adjusted by management, rather than being a reflection of the company's financial position as reported on the balance sheet. The other three options are all potential issues related to the accuracy and completeness of financial reporting on the balance sheet.

Which Item Below Would Not Be a Quality of Financial