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acc560 week 10 discussion 1

acc560 week 10 discussion 1 - ,liquidityand...

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Analysis of financial statements is directed at two characteristics of a company, liquidity and  profitability. Agree or Disagree. Explain. I disagree with the statement.   Analysis of financial statements should be directed at three characteristics of a  company, liquidity, profitability, and solvency.  Liquidity measures a company’s capacity to pay its obligations as they  come due.  A short-term creditor, such as a bank, is primarily interested in liquidity.  Profitability measures the  company’s ability to generate a return on its resources for a given period of time.  Solvency measures the ability of 
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