$1.$ Why is the Liability section of the balance sheet of primary importance to bankers?

a$.$ To evaluate the entity$$s credit quality.

b$.$ To assist in understanding the entity$$s liquidity.

c$.$ To better understand sources of repayment.

d$.$ To evaluate operating efficiency.

$2.$ Which of the following is not true about the discount on short$-$term notes payable?

a$.$ The Discount on Notes Payable account has a debit balance.

b$.$ The Discount on Notes Payable account should be reported as an asset on the balance sheet,

c$.$ When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate.

d$.$ All of these are true.

$3.$ The statement of cash flows provides answers to all of the following questions except

a$.$ Where did the cash come from during the period

b$.$ what was the cash used for during the period?

c$.$ what is the impact of inflation on the cash balance at the end of the year?

what was the change in the cash balance during the period?