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Practicing Success
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| Trade payables are particularly interested in the firm’s ability to meet its claims over which period of time while analyzing the financial statements of the company? |
Long period 10 years period Short period 5 years period |
| Short period |
| 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. |
