Balance sheet information is useful for all of the following except
A) assessing a company's risk
B) evaluating a company's liquidity
C) evaluating a company's financial flexibility
D) determining free cash flows.

Question

Quizplus · Accepted Answer

The balance sheet provides information on a company's assets, liabilities, and equity at a specific point in time. This information is useful for assessing a company's risk, evaluating its liquidity, and determining its financial flexibility. However, free cash flows are typically determined using information from the cash flow statement, which provides information on a company's cash inflows and outflows over a period of time. Therefore, the balance sheet is not useful for determining free cash flows.

Balance Sheet Information Is Useful for All of the Following