Financial Reporting and Analysis Q103

103Which of the following is least likely correct about balance sheets?

A
Different assets and liabilities on the balance sheet have different measurement bases.
B
Equity in the balance sheet is a measure of the intrinsic value of a company.
C
Items on the balance sheet are measured at current value at the end of the reporting period that are subject to change.

Option : B
Explanation : Equity is a not a measure of the company’s intrinsic value because different items are measured differently, such as historical cost, fair value.

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