Question

Shareholders' equity reported on the balance sheet is most likely to differ from the market value of shareholders' equity because: some factors that affect the generation of future cash flows are excluded shareholders' equity reported on the balance sheet is updated continuously historical cost basis is used for all assets and liabilities

Answer 1

Shareholders' equity reported on the balance sheet is most likely to differ from the market value of shareholders' equity because historical cost basis is used for all assets and liabilities.

What is Shareholders' equity?

Shareholders' equity is the claim of the owners of a company on the asset of the company after liabilities have been accounted for.

Shareholders' equity = assets - liabilities.

Accounting principles dictate that assets and liabilities be recorded on an historical basis on the balance sheet. This entails recording the asset at the cost at which it was purchased.

To learn more about stockholder’s equity, please check: https://brainly.com/question/26210654