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WSO - Technical Questions And Answers!!
WSO - Technical
WSO - Technical
Tell me why each of the financial statements by itself is inadequate for evaluating a company? - Answer- 1) Income Statement - doesn't tell you if the Company has enough cash to stay afloat / solvent Why do you need Balance Sheet? -whether the Company can meet liabilities Why do you need CF? -generating enough cash to fund growth 2) Balance Sheet -Won't tell you how profitable a Company is b/c it is a snapshot (i.e., small liabilities, with a TON of assets could be losing a lot of mone...
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