A high-quality balance sheet typically has

Question

Quizplus · Accepted Answer

A high-quality balance sheet typically has limited use of debt or leverage. This is because excessive debt can make a company vulnerable to financial trouble and instability. In addition, a high-quality balance sheet should have clear and detailed footnotes that provide transparency and disclosure of the company's financial position, as well as repeatable earnings that demonstrate the company's ability to generate consistent profits over time. A poor reflection of reality would indicate inaccuracies or misrepresentations in the balance sheet, which would not be considered high-quality.

A High-Quality Balance Sheet Typically Has