All of the following are true regarding a high quality balance sheet except:
A) It should portray the economic resources that can be reasonably expected to generate future economic benefits.
B) It should provide a complete and fair portrayal of all of the firm's obligations at a point in time, including the present value of long-term liabilities for future payments.
C) It should minimize measurement error and bias.
D) It should be optimistic in terms of accounting numbers.

Question

Quizplus · Accepted Answer

A high quality balance sheet should not be optimistic in terms of accounting numbers, as this would lead to an overstatement of assets and an understatement of liabilities. It is important to provide a realistic portrayal of the firm's financial position to enable users of the balance sheet to make informed decisions. Choices A, B, and C are all true regarding a high quality balance sheet.

All of the Following Are True Regarding a High Quality