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| Typical Balance Sheet |
by Cherileigh Leavitt
The language of business: a fictional tale or a reliable report? What do investors and businesses really want?
The technological innovations of the Digital Age caused people to question and sometimes abandon traditional methods. For example, CBS News released an article last year reporting that over fifty percent of U.S. households no longer used landlines and only had cellphone service. Flash back just over a decade to 2004 and over ninety percent of U.S. households had landlines, but they’re now considered a “dying breed.” Just as traditional systems have been challenged in the past, a traditional accounting system is being challenged today. Assets and liabilities are traditionally reported at historical cost, but historical value also has a competitor: fair market value.
