Question

In the trend of total liabilities of significance in analyzing the financial condition of a business? If so, what other trends should be used in connection therewith​

Answer 1

Explanation:

As business owners, we are so busy with the day-to-day operations of running a business that we may forget to take a look at our business as a whole and ignore any company financial statement analysis.

By analyzing Financial Statements, we can:

Spot trends over time

Identify the mix of Assets and Liabilities within a certain period

Examine relationships among items to determine efficient operations.

The analysis of Financial Statements is an evaluation of:

A firm’s past financial performance

Its prospects for the future