Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

Question

Quizplus · Accepted Answer

The balance sheet shows the current assets and liabilities of a company, including those that are due within 30 days. It provides information about the company's ability to meet its short-term obligations. The income statement shows revenue, expenses and profits (or losses) over a period of time, but does not directly provide information about the company's liquidity position. The statement of stockholders' equity shows changes in the company's equity over time, and the statement of cash flows shows the inflows and outflows of cash over a period of time, but neither of them directly provides information about the company's ability to pay its short-term obligations.

Which Financial Statement Would You Utilize to Determine Whether a Company