What financial statement does a company mainly use to understand the health of the firm?

Question

Quizplus · Accepted Answer

The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time, which helps assess the overall financial health of the company. It shows the company's financial position, including its liquidity, solvency, and ability to meet financial obligations. While other financial statements provide important information, such as income and cash flow, the balance sheet is the most useful for understanding the overall health of the firm.

What Financial Statement Does a Company Mainly Use to Understand