Sabiha is the small business loan officer at Regional National Bank.It is her job to approve loans for small businesses so that the local economy will grow.One factor she looks at carefully when making loan decisions is the amount of debt the firm already has outstanding.She can find this information by looking at which of the following financial statements of the firm?

Question

Quizplus · Accepted Answer

The amount of debt outstanding is reported on the balance sheet of the firm. Therefore, Sabiha should look at the balance sheet to determine the amount of debt already owed by the small business. The income statement, statement of cash flows, and cash budget do not provide information on the amount of debt outstanding.

Sabiha Is the Small Business Loan Officer at Regional National