Which of the following is a limitation of the balance sheet?
A) Many items are omitted.
B) Judgment must be used.
C) Current values are not reflected.
D) All of these answers are correct

Question

Quizplus · Accepted Answer

All of the given options are limitations of the balance sheet. Many items are omitted as not all assets and liabilities can be explicitly stated. Judgment must be used for various estimates, such as depreciation of assets. Current values may not be reflected, as the values reported on the balance sheet are based on historical cost rather than current market value.

Which of the Following Is a Limitation of the Balance