请问为什么选C。。。

问题如下：

Question The common shareholders’ equity reported on a company’s balance sheet is seldom an appropriate measure of the market or intrinsic value of the company’s common shares. The most likely reason for this fact is that the balance sheet:

选项：

A.evaluates a company’s financial position spanning a period of time.

B.recognizes items only when future economic benefits are reasonably certain.

C.fails to include all aspects of a company’s ability to generate future cash flow.

解释：

C is correct. A company’s value is a function of many factors, including expected future cash flows and current market conditions. Important aspects of a company’s ability to generate future cash flows—for example, its reputation and management skills—are absent from the balance sheet.

B is incorrect. While the statement is true of all financial statements, it is not a reason that intrinsic or market value may be different from equity reported on the balance sheet. The balance sheet is intended to disclose all relevant information about what an entity owns (or controls), what it owes, and what the owners’ claims are at a specific point in time.

A is incorrect. The balance sheet information is presented as of a specific point in time. The income statement and cash flow statement are financial statements that are evaluated spanning a period of time.