A balance sheet may be considered backward-looking from the perspective that:

Question

Quizplus · Accepted Answer

A balance sheet records the assets, liabilities, and equity of a company at a particular point in time, which are historic values. It does not provide information about current values or future performance, which are the concerns of the income statement and cash flow statement. Therefore, the balance sheet is considered a backward-looking financial statement. Choices A, C, and D are not accurate descriptions of the nature of the balance sheet.

A Balance Sheet May Be Considered Backward-Looking from the Perspective