Business Finance
Balance Sheet vs. Income Statement

Question Description

an external investor's perspective, is a firm's income statement, balance sheet or statement of cash flows most important for determining a firm's overall financial health? Would your answer differ if you were an internal manager of the firm? Explain

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

As an external investor's perspective, balance sheet is most important for determining the firm's overall financial health. 

Being an internal manager of the firm, my answer will remain same because the balance sheet shows the total of assets and liabilities company owns. Although internal manager can access all the three statements, but only balance sheet depicts the firm's financial health

whgrab (12081)
Boston College

Anonymous
Very useful material for studying!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4