Answer (D) is correct . The balance sheet presents three major financial accounting elements:? assets (items of value), liabilities (debts), and equity (net worth). According to the FASB’s Conceptual Framework, assets are probable future economic benefits resulting from past transactions or events. Liabilities are probable future sacrifices of economic benefits arising from present obligations as a result of past transactions or events. Equity is the residual interest in the assets after deduction of liabilities.
Answer (A) is incorrect because The measurement attributes of assets include but are not limited to fair value.
Answer (B) is incorrect because Financial statements reflect the going concern assumption. Hence, they usually do not report forced liquidation values.
Answer (C) is incorrect because The income statement provides this type of information.
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