A creditor through an analysis of financial statements judges not only the present ability of the company to meet its obligations but also the probability of a continued ability to meet all its.................. obligations in the future.

Financial

The correct answer is option 1- Financial.

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.