Question

Major limitations of the balance sheet include all of the following except: it necessarily omits many items that are of financial value but cannot be recorded objectively. most assets and liabilities are reported at historical cost. judgments and estimates are used to determine many of the items reported. only amounts known with absolute certainty are reported.

Answer 1

Answer:

Option D Only amounts known with absolute certainty are reported

Explanation:

This is incorrect statement because International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets sheds light on the recording of future events that will arise as a result of past events. The standard is useful in estimating future events so saying that the absolutely certain amounts are reported is incorrect.