When seeking to evaluate the financial soundness of the company prior to purchase,the buyer needs to examine:
A)sales tax records.
B)income tax returns.
C)financial statements.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are important for evaluating the financial soundness of a company. Sales tax records can indicate the volume of sales and compliance with tax laws, income tax returns provide insights into the company's profitability and tax practices, and financial statements (including balance sheets, income statements, and cash flow statements) offer a comprehensive overview of the company's financial health and performance.

When Seeking to Evaluate the Financial Soundness of the Company