Which of the following is true?
A) Comparing both the income statements and the balance sheets shows that SportsAde is the better choice to invest money in.
B) Based on the income statements, SportsAde is in a better financial position and you should purchase its stock.
C) Based on the balance sheets, SweetFeet is in a better financial position and you should purchase its stock.
D) It is necessary to compare both the income statement and the balance sheet to get an accurate picture of the financial health of each company.

Question

Quizplus · Accepted Answer

It is necessary to look at both the income statement and the balance sheet to get a comprehensive understanding of a company's financial health. Comparing one aspect alone is not sufficient to make an informed investment decision.

Which of the Following Is True