If an Investor Is Interested in the Solvency of a Company

question 52

Multiple Choice

If an investor is interested in the solvency of a company, he/she should analyze the

• A)balance sheet and income statement.
• B)income statement, balance sheet, and statement of cash flows.
• C)balance sheet and statement of cash flows.
• D)statement of cash flows only.

---

Definitions:

Central

Principal or highly important; this term can relate to main functions, locations, or processes within various fields.

Tertiary

Pertaining to the third order, stage, level, or degree in a sequence.

Trait Theorists

Psychologists who study personality, focusing on the identification and measurement of consistent behavior patterns referred to as traits.

Biological

Pertaining to the processes and phenomena of living organisms or life itself.