If the balance sheet shows the same beginning and ending balance for depreciable assets, there
A)have been no financing activities during the year.
B)have been no investing activities during the year.
C)may have been investing activities.
D)may have been financing activities.
E)have been no investing and financing activities during the year.

Question

Quizplus · Accepted Answer

The balance sheet shows the financial position of a company at a specific point in time. The beginning and ending balances for depreciable assets are the same, which means that there has been no change in the value of these assets during the year. This could be due to a number of factors, including:* The company has not purchased or sold any depreciable assets during the year.* The company has purchased and sold depreciable assets, but the total value of the assets purchased is equal to the total value of the assets sold.* The company has depreciated its depreciable assets by the same amount that it has purchased new assets.Since there has been no change in the value of depreciable assets, there have been no investing activities related to these assets during the year. However, there may have been financing activities, such as the issuance of debt or equity, that have affected the company's overall financial position.

If the Balance Sheet Shows the Same Beginning and Ending