The statement of financial position omits many items that are of financial value to the business but cannot be recorded objectively.

Question

Quizplus · Accepted Answer

The statement of financial position only includes items that can be recorded objectively, such as assets, liabilities, and equity. Other items that are of financial value to the business, but cannot be recorded objectively, such as the company's reputation or employee morale, are not included in the statement of financial position.

The Statement of Financial Position Omits Many Items That Are