The statement of financial position is useful for analyzing all of the following except
A) liquidity.
B) solvency.
C) profitability.
D) financial flexibility.

Question

Quizplus · Accepted Answer

The statement of financial position provides information about an organization's assets, liabilities, and equity at a specific point in time. It is best used for analyzing liquidity, solvency, and financial flexibility, but not profitability. Profitability is better analyzed through the income statement, which shows an organization's revenues, expenses, and net income over a period of time.

The Statement of Financial Position Is Useful for Analyzing All