Which of the following generally is considered a limitation of the balance sheet?
A) The balance sheet reflects the current value of a business.
B) The balance sheet reflects the instability of the dollar.
C) Balance sheet formats and classifications do not vary to reflect industry differences.
D) Due to measurement s,some enterprise resources and obligations are not reported on the balance sheet.

Question

Quizplus · Accepted Answer

Due to measurement limitations, some enterprise resources and obligations may not be reported on the balance sheet. For example, intangible assets or contingent liabilities may not be recognized or reported accurately on the balance sheet.

Which of the Following Generally Is Considered a Limitation of the Balance