What are limitations of balance sheet

Question

Accepted Answer

Balance sheet does not reflect the current market value of assets and liabilities.

Balance sheet only shows historical cost of assets and liabilities.
Intangible assets like patents, trademarks, and goodwill are not always accurately reflected.
Balance sheet does not account for off-balance sheet items like leases and contingent liabilities.
Inflation can distort the value of assets and liabilities over time.
Balance sheet does not provide information on the quality of assets or the ability to generate cash flow.

Accepted Answer

No limitations should be there, it shows that the pre recorded and is based on customer and reputation of our company products

Accepted Answer

The limitations of balance sheet are three : assets being recorded at historical cost, use of estimates, and the omission of valuable non monetary assets

What are limitations of balance sheet

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