Which would not be useful in searching for hidden assetsSolu

Which would not be useful in searching for hidden assets?

Solution

ANSWER:

In accounting, a hidden asset is an asset that is not shown on a balance sheet. The requirement to search for hidden assets can arise in a numerous practice areas, including shareholder/partnership disputes, fraud investigations, divorce cases, and business valuations. It can be done as:

a. Calculating industry ratios.
b. Looking at lifestyles of major players.
c. Using the net worth method.
d. Comparing cash flow with income.