Question

One criticism NOT normally aimed at a balance sheet prepared using current accounting and reporting standards is: A. Failure to include items of financial value that cannot be recorded objectively B. Failure to reflect current value information. C. The extensive use of separate classifications. D. An extensive use of estimates.

Answer 1

Answer: The correct answer is "C. The extensive use of separate classifications.".

Explanation: One criticism NOT normally aimed at a balance sheet prepared using current accounting and reporting standars is the extensive use of separate classifications.

According to current accounting and reporting standards, excessive accounting account classifications cannot be used, but must be grouped into large traditional and common groups.