Question
Which items below cannot be assessed using the balance sheet only? List the numbers. 1. Fair market value is a company's net assets. 2. Risk
Which items below cannot be assessed using the balance sheet only? List the numbers.
1. Fair market value is a company's net assets.
2. Risk of the firm based on the relative size of claims to resources.
3. How efficiently a company manages its economic resources?
4. Long-term solvency: Ability to pay all liabilities with assets.
5. Liquidity: Ability to pay current/short-term liabilities with current assets.
6. Cash inflows/outflows during a period and ability to generate cash.
7. Cash flow generates power of economic resources.
8. The profitability of a company over a long-term period of time.
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