All of the following statements about balance sheets are true EXCEPT
A) Assets - Liabilities = Shareholders' Equity.
B) assets are reported at historical cost.
C) balance sheets show average asset balances over a one-year period.
D) a balance sheet reports a company's financial position at a specific point in time.

Question

Quizplus · Accepted Answer

Balance sheets do not show average asset balances over a one-year period. Instead, they report the balances of assets, liabilities, and shareholders' equity at a specific point in time.

All of the Following Statements About Balance Sheets Are True