Which of the following is a limitation of the balance sheet?
A) Many items that are of financial value are omitted.
B) Judgments and estimates are used.
C) Current fair value is not reported.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All three options are limitations of the balance sheet. Many items of financial value are omitted since only items with a monetary value can be reported. Judgments and estimates are used for items such as bad debts and depreciation. The current fair value is not reported for assets, and liabilities are only reported at their book value.

Which of the Following Is a Limitation of the Balance