Historic financial results A)help a lender determine the company's ability to service debt. B)predict future cash flows with accuracy. C)are not really needed for a financial analysis. D)replace the need for financial projections.

Question

Quizplus · Accepted Answer

Historic financial results are important in analyzing a company's ability to service their debt. It shows the company's past performance and financial stability, which is useful information for lenders. However, historic financial results alone cannot accurately predict future cash flows or replace the need for financial projections.

Historic Financial Results