A balance sheet provides information on the liquidity of the entity.

Name: A balance sheet provides information on the liquidity of the entity.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

A balance sheet shows the assets, liabilities, and equity of an entity, which helps determine its liquidity. It shows how much cash, accounts receivable, and inventory the entity has compared to its debts and obligations. This information helps assess the entity's ability to pay off its short-term debts and meet its financial obligations.

A Balance Sheet Provides Information on the Liquidity of the Entity