Which of the following statement is incorrect regarding how balance sheets are prepared?
A) The left-hand side of a balance sheet shows a firm's assets.
B) The assets on a balance sheet are shown in order of liquidity.
C) Assets are recorded at fair market value rather than cost.
D) The right-hand side of a balance sheet shows a firm's liabilities and its owners' equity.
E) Intellectual property receives value in some cases and in some cases it does not.

Question

Quizplus · Accepted Answer

Assets are typically recorded at cost or historical cost, not necessarily fair market value.

Which of the Following Statement Is Incorrect Regarding How Balance