BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Choose the correct way to evaluate financial position.
A
Credit statement
B
Balance sheet
C
Credit flow
D
Budget
Explanation: 

Detailed explanation-1: -The strength of a company’s balance sheet can be evaluated by three broad categories of investment-quality measurements: working capital, or short-term liquidity, asset performance, and capitalization structure. Capitalization structure is the amount of debt versus equity that a company has on its balance sheet.

Detailed explanation-2: -The main elements of a statement of financial position are assets, liabilities and equity.

Detailed explanation-3: -What are some things you look for in financial statements as an investor? When analyzing financial statements, investors should consider reviewing a company’s net profit, sales and revenue growth, debt level, profit margin, and free cash flow.

Detailed explanation-4: -Parts of a Balance Sheet. A balance sheet is divided into three overall categories: assets, liabilities and shareholder equity. Each line item under these categories is the position of the business at that particular point in time.

There is 1 question to complete.