The Balance Sheet cannot show:
A) the current ratio.
B) the value of common stock outstanding.
C) the change in retained earnings.
D) the price earnings relationship.

Question

Quizplus · Accepted Answer

The Balance Sheet shows the assets, liabilities, and equity of a company at a specific point in time. It does not provide information on the price earnings relationship, which is a financial ratio calculated using information from the Income Statement and market price of the company's stock. The other options, such as the current ratio, value of common stock outstanding, and change in retained earnings, can be calculated from information on the Balance Sheet.

The Balance Sheet Cannot Show