The analysis of a firm's financial statements can be an important factor in the firm's ability to borrow money.

Question

Quizplus · Accepted Answer

Lenders often use financial statements to evaluate a firm's creditworthiness and ability to repay loans. A strong financial position indicated by the statements can increase the likelihood of a loan being approved, while a weak financial position can result in higher interest rates or denial of a loan.

The Analysis of a Firm's Financial Statements Can Be an Important