Argon Inc., a textile company, installed new equipment in its factory two years ago. This increased the production rate. The chief executive officer of Argon wants to determine the current assets and liabilities of the company. The financial report that can provide this information is the _____.
A) cash flow statement
B) financial ratio report
C) balance sheet
D) income statement

Question

Quizplus · Accepted Answer

The balance sheet provides information regarding a company's current assets and liabilities, including inventory, cash, accounts receivable, and accounts payable. The cash flow statement would provide information related to cash inflows and outflows, while the income statement would provide information regarding the company's revenues and expenses. The financial ratio report would provide information on the company's financial performance in terms of profitability, liquidity, and solvency, but may not provide specific details on current assets and liabilities.

Argon Inc, a Textile Company, Installed New Equipment in Its Factory