The financial statement that would be most useful in evaluating a company's financial flexibility is the
A)balance sheet
B)income statement
C)statement of owners' equity
D)statement of retained earnings

Question

Quizplus · Accepted Answer

The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. This information can be used to evaluate a company's financial flexibility, as it shows how much cash and other liquid assets the company has available to meet its financial obligations. Additionally, the balance sheet can provide information on a company's debt levels, which can be an indicator of financial flexibility.

The Financial Statement That Would Be Most Useful in Evaluating