Which of the following is true of a personal balance sheet?
A) It provides a snapshot of an individual's financial condition at a specific point in time.
B) It reflects the historical cost of assets and the estimated current amounts of liabilities.
C) It is prepared by the manager for the personal use of the company.
D) It is prepared by a company for individual investors to reflect the data required by them.

Question

Quizplus · Accepted Answer

A personal balance sheet provides a snapshot of an individual's financial condition at a specific point in time by listing all assets, liabilities, and net worth. It is not prepared by a manager for personal use or by a company for individual investors. It also reflects the current market value of assets and the actual amounts of liabilities, not estimated values.

Which of the Following Is True of a Personal Balance