When Evaluating a Balance Sheet, the Two Primary Questions Are

question 30

Multiple Choice

When evaluating a balance sheet, the two primary questions are:

• A) whether a firm has sufficient short-term assets to cover its short-term debts and whether it is profitable
• B) whether a firm is profitable and whether a firm is financially sound
• C) whether its costs of sales is going up and whether it is generating excess cash that could be used to pay down debt or pay dividends
• D) whether a firm has sufficient short-term assets to cover its short-term debts and whether it is financially sound
• E) whether a firm is profitable and whether it is generating excess cash that could be used to pay down debt or pay dividends

---

Definitions:

Benefits

Advantages or financial assistance provided, typically by an employer, the government, or insurance.

HRM Specialists

Professionals in the field of Human Resource Management who focus on specific areas such as recruitment, training, performance management, and employee relations.

Employee Relations

The management of the relationship between employers and employees to ensure mutual satisfaction and address issues like rights, conditions, and disputes.

Compensation And Benefits

The combination of salary, wages, and additional perks or rewards that an employer provides to employees in exchange for their work and performance.