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NEW QUESTION: 1
A Flash movie, rendered with the HTML object and embed tags.
NEW QUESTION: 2
In analyzing a company's financial statements, which financial statement would a potential investor
primarily use to assess the company's liquidity and financial flexibility?
A. Statement of cash flows.
B. Income statement.
C. Statement of retained earnings.
D. Balance sheet.
Choice "A" is correct. Liquidity ratios and coverage ratios focus on balance sheet account balances.
Choice "B" is incorrect. Income statement information is primarily used for profitability analysis.
Choice "C" is incorrect. The statement of retained earnings is primarily a reconciliation of the retained
Choice "D" is incorrect. The statement of cash flows assesses cash inflows and cash outflows.