Cecil, the general manager of a hotel, picks up a balance sheet from the end of the previous fiscal year, which ended December 31. He is gathering information to prove to creditors that the hotel is able to pay its debts. If the current date is July 14:
a. the balance sheet is too outdated to be helpful.
b. Cecil may use the balance sheet for one-and-a-half more months, after which the statement will be useless.
c. a few corrections to the footnotes may be all that is necessary to update the statement.
d. the balance sheet's assets may need to be updated.
- Anonymous9 years agoFavorite Answer
I would choose a - too out dated. As an accountant I would want to see the latest management accounts and balance sheet which I would expect to be within a month to six weeks of their date. The balance sheet on its own is not enough, and I would certainly want to see notes and explanations.