Class 3

Class 3 PowerPoint PPT Presentation


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Class 3 (Chapter 5). 2. Balance Sheet: Usefulness. Displays the assets, liabilities and equity of the firmThe balance sheet provides information for evaluating the capital structure/financial risk of the firmThe balance sheet in conjunction with the income statement provides information useful in analyzing the firm's:financial performance short-term liquidity (ability to pay current liabilities)solvency (ability to pay interest and debt, as it matures).

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Class 3

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