Deal of The Day! Hurry Up, Grab the Special Discount - Save 25%
- Ends In
00:00:00
Coupon code:
SAVE25
X
Welcome to Pass4Success
Login
|
Sign up
-
Free
Preparation Discussions
Mail Us
support@pass4success.com
Location
US
MENU
Home
Popular vendors
Salesforce
Microsoft
Nutanix
Amazon
Google
CompTIA
SAP
VMware
Fortinet
PeopleCert
Eccouncil
HP
Palo Alto Networks
Adobe
ServiceNow
Dell EMC
CheckPoint
Linux Foundation
Discount Deals
New
About
Contact
Login
Sign up
Home
Discussions
CFA Institute Discussions
Exam CFA-Level-I Topic 2 Question 2 Discussion
CFA Institute Exam CFA-Level-I Topic 2 Question 2 Discussion
Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 2
Topic #: 2
[All CFA-Level-I Questions]
Which of the following would not be a limitation of the balance sheet?
A
Long-lived assets may not reflect their market value because they are stated at historical cost.
B
Significant assets and liabilities may be omitted because GAAP does not require their inclusion.
C
GAAP permits companies to delay recognition of value changes, such as employee benefit plans.
D
Some assets and liabilities are carried at historical cost bearing little relationship to their real market value.
Show Suggested Answer
Hide Answer
Suggested Answer:
C
by
Francene
at
Aug 27, 2024, 09:58 PM
Limited Time Offer
25%
Off
Get Premium CFA-Level-I Questions as Interactive Web-Based Practice Test or PDF
Contribute your Thoughts:
Submit
Cancel
Joseph
2 months ago
The balance sheet is like a snapshot of a company's financial health - it's not the whole movie, you know?
upvoted
0
times
...
Cherrie
2 months ago
Wait, is 'not a limitation' a trick question? I'm scratching my head on this one.
upvoted
0
times
Ty
26 days ago
Another limitation is that it doesn't account for intangible assets like brand value.
upvoted
0
times
...
Flo
1 months ago
One limitation of the balance sheet is that it only shows a snapshot in time.
upvoted
0
times
...
Cassandra
2 months ago
No, it's not a trick question. Let me help you out.
upvoted
0
times
...
...
Coral
2 months ago
The balance sheet doesn't capture intangible assets like brand value, which is definitely a limitation.
upvoted
0
times
Miesha
2 months ago
It's important to consider the limitations of the balance sheet when analyzing a company's financial position.
upvoted
0
times
...
Annelle
2 months ago
That's true, the balance sheet does have limitations in capturing certain assets.
upvoted
0
times
...
Gracie
2 months ago
Intangible assets like brand value are not included in the balance sheet.
upvoted
0
times
...
...
Hyun
3 months ago
Lack of fair value accounting for some assets and liabilities is a limitation, not a strength.
upvoted
0
times
Raul
1 months ago
Fair value accounting may not accurately reflect the true value of certain assets.
upvoted
0
times
...
Refugia
2 months ago
Not all assets and liabilities are recorded at fair value on the balance sheet.
upvoted
0
times
...
Marjory
2 months ago
It can be difficult to determine the fair value of certain assets.
upvoted
0
times
...
Mickie
3 months ago
Fair value accounting can be subjective.
upvoted
0
times
...
...
Deane
3 months ago
The balance sheet doesn't show future cash flows, which is a key limitation.
upvoted
0
times
Sol
2 months ago
The balance sheet doesn't consider intangible assets.
upvoted
0
times
...
Jess
3 months ago
Future cash flows are not included in the balance sheet.
upvoted
0
times
...
Latosha
3 months ago
It doesn't reflect the current market value of assets.
upvoted
0
times
...
Alisha
3 months ago
Balance sheet only shows a snapshot in time.
upvoted
0
times
...
...
Mendy
3 months ago
I agree with both of you. Another limitation could be that it doesn't reflect the market value of assets.
upvoted
0
times
...
Tatum
3 months ago
That's true, but another limitation could be that it doesn't include intangible assets.
upvoted
0
times
...
Charolette
3 months ago
I think one limitation could be that it only shows a snapshot in time.
upvoted
0
times
...
Log in to Pass4Success
×
Sign in:
Forgot my password
Log in
Report Comment
×
Is the comment made by
USERNAME
spam or abusive?
Commenting
×
In order to participate in the comments you need to be logged-in.
You can
sign-up
or
login
Save
Cancel
Joseph
2 months agoCherrie
2 months agoTy
26 days agoFlo
1 months agoCassandra
2 months agoCoral
2 months agoMiesha
2 months agoAnnelle
2 months agoGracie
2 months agoHyun
3 months agoRaul
1 months agoRefugia
2 months agoMarjory
2 months agoMickie
3 months agoDeane
3 months agoSol
2 months agoJess
3 months agoLatosha
3 months agoAlisha
3 months agoMendy
3 months agoTatum
3 months agoCharolette
3 months ago