What is the main limitation of balance sheet apart from only reporting historical figures?

Question

Accepted Answer

The main limitation of the balance sheet is that it only provides a snapshot of a company's financial position at a specific point in time.

Balance sheet does not reflect the current market value of assets and liabilities.
It does not capture the future potential of the company.
It does not consider qualitative factors such as brand reputation or employee morale.
Balance sheet figures can be manipulated through accounting practices.
It does not provide information on cash flows or the liquidity of assets.
Balance sheet does not account for inflation or changes in currency values.

Accepted Answer

According to Finance Strategists, balance sheet items are not all measured in the same way. Some assets and liabilities are valued at historical 
Some of the current assets are valued on an estimated basis, so the balance sheet is not in a position to reflect the true financial position of the business. The balance sheet can not reflect those assets which cannot be expressed in monetary terms, such as skill, intelligence, honesty, and loyalty of workers.

Accepted Answer

The figures in a balance sheet is only valid for one day. Next day all changes.

What is the main limitation of balance sheet apart from only reporting historical figures?

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