The balance sheet of an entity:
A)shows the fair value of the assets at the date of the balance sheet.
B)reflects the impact of inflation on the replacement cost of the assets.
C)reports plant and equipment at its opportunity cost.
D)shows amounts that are not adjusted for changes in the purchasing power of the dollar.

Question

Quizplus · Accepted Answer

The balance sheet typically reports historical cost, not adjusted for inflation or changes in purchasing power.

The Balance Sheet of an Entity