An analyst with a national ratings agency is concerned about a firms ability to meet its short term obligations. To evaluate the

Question

3 years ago

10

firm's liquidity, the analyst would most likely refer to the:
a. Balance Sheet
b. Income Statement
c. Cash Flow Statement

1 answer:

Semmy [17] · Answer 1 · 2021-12-30T22:33:34+03:00

Answer:

a. Balance Sheet

Explanation:

The balance sheet reports the total assets, total liabilities and stockholder equity.

The total asset is comprised of the current asset, fixed assets, and the intangible asset

The total liabilities comprise of current liabilities and long term liabilities

The aim to make the balance sheet is to analyze the liquidity, financial performance, position of the company

Whereas the cash flow statement shows the inflow and outflow of cash and the income statement records total revenues and total expenditures.