Which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?
A) statement of cash flows.
B) statement of stockholders' equity.
C) income statement.
D) balance sheet.

Question

Quizplus · Accepted Answer

The balance sheet provides information about a company's assets and liabilities, including its current assets and current liabilities. If the company has enough current assets (such as cash or accounts receivable) to cover its current liabilities (such as accounts payable), it is more likely to be able to pay for the goods when payment is due in 30 days. The statement of cash flows shows changes in cash and cash equivalents during a period, but it does not provide information about current assets and liabilities. The statement of stockholders' equity and income statement also do not provide this information.

Which Financial Statement Would You Look at to Determine Whether