Question

If a publicly traded company is trying to maximize its perceived performance, as reported to decisions makers external to the corporation, the company is most likely to understate which of the following on its balance sheet?

A.Liabilities
B.Retained Earnings
C. Contributed Capital
D.Assets

Answer 1

If a publicly traded company is trying to maximize its perceived performance, it is most likely to understate liabilities on its balance sheet.

Step-by-step explanation:

If a publicly traded company is trying to maximize its perceived performance, it is most likely to understate Liabilities on its balance sheet.

By understating liabilities, the company can make its financial position appear stronger than it actually is. This can lead to a higher stock price and more favorable perception from external decision makers. However, it is important to note that understating liabilities is not a recommended practice and can be misleading to investors and stakeholders.