To determine a person's solvency,which financial document should be consulted?

Question

Quizplus · Accepted Answer

The balance sheet provides a snapshot of a person's financial situation at a specific point in time, showing their assets, liabilities, and net worth. This is the most comprehensive and reliable document when it comes to determining someone's solvency. A cash flow statement or budget can provide insight into a person's income and expenses, but they do not give a complete picture of their overall financial health. A debt consolidation statement only shows one aspect of their liabilities and may not include all debts. A credit report can provide information on a person's credit history and outstanding debts but does not show their net worth or assets.

To Determine a Person's Solvency,which Financial Document Should Be Consulted