The statement of financial position can help assess all of the following except
A) Solvency.
B) Financial flexibility.
C) Profitability.
D) Liquidity.

Question

Quizplus · Accepted Answer

The statement of financial position provides information about the assets, liabilities, and equity of an organization at a specific point in time. This information can be used to assess the organization's solvency (ability to meet long-term obligations), financial flexibility (ability to respond to unexpected events or take advantage of opportunities), liquidity (ability to meet short-term obligations), and capital structure. However, it does not provide direct information about profitability, which is typically assessed through the income statement.

The Statement of Financial Position Can Help Assess All of the Following