Financial reports for a reporting entity should fairly reflect each of the following except:
A)capital budget.
B)liquidity of the firm.
C)financial performance.
D)financial position.

Question

Quizplus · Accepted Answer

The capital budget is a projection of future expenditures on long-term assets or investments, which may not be reflected in current financial reports. The other options (liquidity, financial performance, and financial position) are key components that should be fairly reflected in a reporting entity's financial reports.

Financial Reports for a Reporting Entity Should Fairly Reflect Each