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

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.

Quizplus · Accepted Answer

The balance sheet provides information on a company's assets, liabilities, and equity at a specific point in time, including the company's cash and accounts payable. By examining the balance sheet, one can determine whether a company has enough cash or other short-term assets to cover its accounts payable, including payments due within 30 days.

Which Financial Statement Would You Look at to Determine Whether