Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 20 - No. 18)
What financial statement would best help a partnership determine its ability to meet its obligations over the next year?
Income Statement.
Statement of Cash Flows.
Balance Sheet.
Statement of Changes in Partners' Equity.
Explanation
The Balance Sheet is the most helpful because it lists assets and liabilities which are crucial to knowing if a company can pay their debts.
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