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Question 3 (1 point) Why would EZ Bank, in deciding whether to make a loan to Davis Company, be interested in the amount of liabilities

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Question 3 (1 point) Why would EZ Bank, in deciding whether to make a loan to Davis Company, be interested in the amount of liabilities Davis has on its statement of financial position? The liabilities represent resources that could be used to repay the loan. EZ bank would be interested in the amount of Davis's assets but not the amount of liabilities. If Davis already has many other obligations, it might not be able to repay the loan. Existing liabilities give an indication of how profitable Davis has been in the past

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