Which of the Following Is Not a Limitation of the Balance

Multiple Choice

Which of the following is not a limitation of the balance sheet?

A) In periods of inflation, lack of disclosure makes it impossible to determine which amounts reported show purchasing power of the assets and liabilities.
B) It fails to include all of a company's economic resources and obligations.
C) Many of the amounts reported are based on estimates, which are subject to change.
D) Valuing assets and liabilities using historical costs does not help in assessing a company's future cash flows.