_____________analysis measures an entity's financial structure and its ability to continue to operate into the future and meet its long-term cash obligations.
A) trend
B) liquidity
C) working capital
D) financial stability

Question

Quizplus · Accepted Answer

Financial stability refers to an entity's ability to meet its long-term financial obligations and continue to operate in the future. Financial analysis is used to assess an entity's financial stability by examining its financial structure and long-term cash flow. Trends, liquidity, and working capital are also important measures in financial analysis, but they focus more on short-term financial health and efficiency rather than long-term stability.

_____________Analysis Measures an Entity's Financial Structure and Its Ability to Continue