Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What are the considerations which an investor considered while making an investment in any company?

Options:

Security

Liquidity

Profitability

All of these

Correct Answer:

All of these

Explanation:

The correct answer is option 4- All of these.

The investors include both short-term and long-term investors. Their prime considerations in their investment decisions are the security and liquidity of their investment with reasonable profitability. Financial statements help the investors to assess long-term and short-term solvency as well as the profitability of the concern.