Practicing Success
Practicing Success
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| Who will evaluate the liquidity position of a company while analyzing the financial statements? |
Government Employees Trade payables None of these |
| Trade payables |
| Trade payables, through an analysis of financial statements, appraises not only the ability of the company to meet its short-term obligations, but also judges the probability of its continued ability to meet all its financial obligations in future. Trade payables are particularly interested in the firm’s ability to meet their claims over a very short period of time. Their analysis will, therefore, evaluate the firm’s liquidity position. |
