Example:
![The balance sheet](https://revisiontown.com/wp-content/uploads/2024/04/Screenshot-2024-04-21-at-7.51.11 PM-768x796.png)
Disadvantages
- Balance sheets are static, and so the financial position of a firm may be largely different every day.
- Figures are not completely accurate, the value of fixed assets can only be known once they are sold.
- Since there is no specific format globally, it may be difficult to compare balance sheets with competitors.
- Not all assets are included in balance sheets, including intangible assets and the value of human capital.