Which of the following statements would be most useful if an analyst wants to know the likelihood of repayment of his debts?
A)income statement
B)balance sheet
C)statement of owner's equity
D)statement of cash flows

Question

Quizplus · Accepted Answer

The balance sheet provides information on an entity's assets, liabilities, and equity. This information can be used to determine the entity's ability to repay its debts, as it shows the amount and nature of the entity's liabilities, including any outstanding debt balances. The income statement, statement of owner's equity, and statement of cash flows provide information on profits or losses, changes in equity, and cash flows, respectively, but they may not be as useful in assessing the entity's ability to repay its debts.

Which of the Following Statements Would Be Most Useful If