Which of the Following Is Not a Limitation of the Balance

question 12

Multiple Choice

Which of the following is not a limitation of the balance sheet?

• A)In periods of inflation, lack of disclosure makes it impossible to determine which amounts reported show purchasing power of the assets and liabilities.
• B)It fails to include all of a company's economic resources and obligations.
• C)Many of the amounts reported are based on estimates, which are subject to change.
• D)Valuing assets and liabilities using historical costs does not help in assessing a company's future cash flows.

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Definitions:

Diversity

The inclusion and representation of different racial, ethnic, gender, sexual orientation, socio-economic, and cultural backgrounds in a group or organization.