Final answer:
The balance sheet has limitations such as omitting financial value items, using judgments and estimates, and not reporting current fair value.
Step-by-step explanation:
The limitations of the balance sheet include the omission of many items that are of financial value, the use of judgments and estimates, and the lack of reporting of current fair value. For example, certain intangible assets such as brand value or intellectual property may not be included in the balance sheet. Additionally, the balance sheet relies on judgments and estimates to determine the value of certain assets and liabilities, which can introduce subjectivity and potential inaccuracies.
A notable limitation is that the balance sheet does not report current fair value of assets, which means that the value of assets may not reflect their true market worth. This is particularly relevant for assets such as real estate or investments, whose market values can fluctuate. Therefore, the correct answer is D. All of these answers are correct as they represent limitations of the balance sheet.