You are a potential creditor and are concerned that a particular company you are ready to give a loan to might have too much debt. Which financial statement would provide you information needed in order to evaluate your concern?
A)Balance Sheet
B)Income Statement
C)Statement of Retained Earnings
D)Statement of Public Accounting

Question

Quizplus · Accepted Answer

The balance sheet provides information about a company's assets, liabilities, and equity. By analyzing the balance sheet, a potential creditor can determine how much debt the company currently has and whether it can handle additional debt. The income statement, statement of retained earnings, and statement of public accounting may provide other useful information, but they are not specifically designed to show a company's level of debt.

You Are a Potential Creditor and Are Concerned That a Particular