Question
a) A creditor might look at a company's Balance Sheet to determine if the company's. 1. share price is likely to decrease, signaling a good
a) A creditor might look at a company's Balance Sheet to determine if the company's. 1. share price is likely to decrease, signaling a good time to sell. 2. assets are sufficient to cover its liabilities. 3. earnings are increasing or decrease. 4. share price is likely to increase, signaling a good time to buy.
b)An inverstor looking at a company's financial statements would be most interested in:
1.wheather the company's share price is likely to fall, signalling a good time to buy. 2.wheather the company has enough assets to cover its liabilities. 3. whether the company is able to generate profit and distribute dividends. 4. whether the company is generating enough cash to make payments on its loans.
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