1) To add....A balance sheet provides information about a "company's financial flexibility, liquidity and solvency" As accounting students , You know that solvency pertains to the ability of a company to pay its debts as they come due. Liquidity on the other hand pertains to the amount of time it takes for an asset to be converted into cash.

FOR YOU AND THE CLASS: What is the meaning of financial flexibility and how important is it to a company?

2) some of the limitations of the balance sheet are that " some assets that cannot be expressed in monetary terms such as skills, loyalty of workers, or the company's reputation cannot be reflected. To add, the reasons why the values of these items are not recorded in the balance sheet concern the lack of faithful representation of the estimates of the future cash flows that will be generated by these assets.

FOR YOU AND THE CLASS: How can the skills, loyalty of workers ,customer base and reputation of the company be reliably measured or how will you approach measuring these items.... please explain

3) one of the limitations of the balance sheet is that "Companies use "judgements and estimates" to determine many items in the Balance Sheet'. This is true since judgments and estimates affect the amounts reported in the balance sheet as there is subjectivity in determining the amounts

FOR YOU AND THE CLASS: What are some situations and examples in which estimates affect amounts reported in the balance sheet....Please discuss