Question:
Analysis of Financial Statements is useful and significant to different users. Which of the following users is particularly interested in the firm’s ability to meet their claims over a very short period of time?
Analysis of Financial Statements is useful and significant to different users. Which of the following users is particularly interested in the firm’s ability to meet their claims over a very short period of time?
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Short-term liquidity ratios like the current ratio and quick ratio are crucial for evaluating a firm’s ability to pay off its current liabilities promptly.
Updated On: Jan 20, 2025
- Labour Unions
- Trade Payables
- Top Management
- Finance Manager
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The Correct Option is B
Solution and Explanation
Trade payables are short-term creditors who are primarily interested in the company’s ability to meet its short-term liabilities (current liabilities). Financial ratios like the current ratio and quick ratio provide this information.
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