List three areas in which the balance sheet provides important information to financial statement users
What will be an ideal response?
Answer: 1. The balance sheet summarizes economic resources and obligations that impact the entity's ability to generate future cash flows.
2. The balance sheet is useful in assessing an entity's rate of return on its investments.
3. The balance sheet aids in assessing the risk associated with an entity by providing inputs for cash flow measures.
Business
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