Which of the following is not a limitation of the balance sheet?
A) Many balance sheet accounts are reported at historical cost instead of market values or liquidation values.
B) A number of assets and liabilities, such as human capital and reputation, are not reported on the balance sheet.
C) Many balance sheet accounts are based upon estimates as opposed to determinable amounts.
D) Many of the balances are reported at their liquidation values.

Question

Quizplus · Accepted Answer

Balance sheets typically report assets and liabilities at historical cost, not liquidation values, which is why option D is not a limitation.

Which of the Following Is Not a Limitation of the Balance