A balance sheet is not particularly useful for determining the current market value of the assets of an entity.

Question

Quizplus · Accepted Answer

A balance sheet provides information about an entity's assets, liabilities, and equity at a specific point in time, but it does not reflect changes in the market value of assets since their acquisition. Market value is determined by supply and demand, and may change rapidly based on external factors such as economic conditions, industry trends, and competition. Therefore, a balance sheet may not reflect the current market value of an entity's assets.

A Balance Sheet Is Not Particularly Useful for Determining the Current