Cam someone help answer question. I choose C Financial Statements Which one of t
ID: 2483635 • Letter: C
Question
Cam someone help answer question. I choose C Financial Statements
Which one of the following is most commonly utilized by users to obtain information for “investment and credit decisions”?
A. a trial balance
B. A/R (accounts receivable) and A/P (accounts payable) aging reports
C. financial statements
D. a chart of accounts
A. a trial balance
B. A/R (accounts receivable) and A/P (accounts payable) aging reports
C. financial statements
D. a chart of accounts
Which one of the following documents is most commonly used to assess the “liquidity” of a company?
A. income statement B. balance sheet
C. statement of owners’ equity D. statement of cash flows
Which one of the following ratios is most commonly used to assess the “liquidity” of a company?
A. net profit margin ratio
B. current ratio
C. asset turnover ratio
D. debt-to-assets ratio
Explanation / Answer
1. Which one of the following is most commonly utilized by users to obtain information for “investment and credit decisions”?
Financial Statments gives the full details of the viz., Profit, Loss, Assets and Liabilities, funture plans of the firm, and other statutory information. The financial statement utilized by users to obtain information for “investment and credit decisionn.
1. Therefore the Answer is C.that is Fnancial Statements
2. Which one of the following documents is most commonly used to assess the “liquidity” of a company?
To assess the liquidity the required information is current assets and current liabilties which available in Balance Sheet of the firm.
Therefore, The Answer is " B " that is Balance Sheet
3. Which one of the following ratios is most commonly used to assess the “liquidity” of a company?
The liquidity ratios are Currnet Ratio, Quick Ratio and Intervel measure.
Therefore the Answer is " B " that is Current Ratio
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.