Banks are likely to request a firm's balance sheet when determining whether or not to loan money to the firm. However, banks would have little interest in the firm's income statement since it covers a short period of time.

Question

Quizplus · Accepted Answer

Both the income statement and the balance sheet are important in evaluating the financial health of an organization. Specifically, the income statement would show the firm's ability to generate the profits with which to pay back a loan.

Banks Are Likely to Request a Firm's Balance Sheet When