Question

A business's balance sheet cannot be used to accurately predict what the business might be sold for because: A) it identifies all the revenues and expenses of the business. B) assets are generally listed on the balance sheet at their historical cost, not their current value. C) it gives the results of operations for the current period. D) some of the assets and liabilities on the balance sheet may actually be those of another entity.

Answer 1

Answer:

The correct option is B

Explanation:

This is because assets are generally listed on the balance sheet at their historical cost, not their current value.

The balance sheet, sometimes called the statement of financial position, lists the company’s assets, liabilities,and stockholders ‘ equity (including dollar amounts) as of a specific moment in time. That specific moment is the close of business on the date of the balance sheet.

Answer 2

Answer:

A) it identifies all the revenues and expenses of the business.

Explanation:

A business balance sheet refers to a financial statement which lists the assets (what the business owns), liabilities (what the business owes) and owner's equity (the money left over for the owners) at a particular time.

The balance sheet is also called the statement of financial position since it summarizes the financial position of a firm or business.