In evaluating the financial health of an existing business that a buyer is interested in purchasing, the following historical documents must be examined except
A) profit and loss statements.
B) seller's personal bank statements.
C) income tax statements.
D) balance sheets.

Question

Quizplus · Accepted Answer

The seller's personal bank statements are not necessary for evaluating the financial health of the business and therefore, do not need to be examined. The other three historical documents (profit and loss statements, income tax statements, and balance sheets) are critical in assessing the financial state of the business.

In Evaluating the Financial Health of an Existing Business That