The asset/liability approach emphasizes:
A) Whether amounts on the balance sheet meet the definitions of assets and liabilities.
B) A close relation between the balance sheet and the statement of cash flows.
C) The distinction between net assets and gross assets.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The asset/liability approach is based on whether amounts on the balance sheet meet the definitions of assets and liabilities. This approach ensures accuracy and compliance with accounting principles and standards.

The Asset/liability Approach Emphasizes