If the following facts were known, which one would strengthen the argument that a company would be able to meet its current financial obligations?
A) The level of accounts payable is high.
B) Liabilities exceed assets.
C) The company currently has a negative cash flow.
D) The company needs to increase the number of customers it serves.
E) Assets exceed liabilities.

Question

Quizplus · Accepted Answer

If assets exceed liabilities, it indicates that the company has sufficient resources to meet its financial obligations, as it has more assets than it owes in liabilities. This strengthens the argument that the company would be able to meet its current financial obligations.

If the Following Facts Were Known, Which One Would Strengthen