Which of the following factors would be indicative of a high quality balance sheet?
A) Book value is greater than market value.
B) The presence of off-balance sheet liabilities
C) Market value is greater than book value.
D) Very little unused borrowing capacity.
E) None of the above.

Question

Quizplus · Accepted Answer

A high-quality balance sheet would have a market value greater than book value because it shows that the company's assets are valued more by the market than their accounting value. Options A, B, and D are all indicators of potential weaknesses or risks on a balance sheet.

Which of the Following Factors Would Be Indicative of a High