Question

Which of the following statements regarding the balance sheet is false?

• A. Buildings and equipment are reported at book val
• B. Assets are reported in the order of liquidity.
• C. Current liabilities are obligations to be paid with current assets.
• D. The balance sheet reflects balances for a period of time.

Answer 1

The correct option is D

The balance sheet reflects balances for a period of time.

Answer d. The balance sheet reflects balances for a period of time

Explanation: In accounting, a balance sheet report is a summary of the monetary balances of an individual or association, regardless of whether it be a business partnership, a sole proprietorship, an enterprise, a private limited company, a private limited company, a government or a not-for-profit entity.

Also see: MCQs on Balance Sheet