Answer to Question #80216 in Finance for Like Heron

Question

Undertake your own research to collect three pieces of financial data. Each piece of data must come from a different source. Submit a copy of the data and your comments in response to these activities to your trainer/ assessor.


b. Evaluate the usefulness of the data to those who might be required to provide a report on financial activity. (Balance Sheet) (From the following link)

https://www.accountingcoach.com/balance-sheet/explanation/4

Answer 1

b. Balance sheet can keep business owners informed about your company's financial standing. Typically, if the ratio of your business's assets to liabilities is less than 1 to 1, your company is in danger of going bankrupt, and you'll have to make some strategic moves to improve its financial health.
Balance sheets are also important because these documents let banks know if your business qualifies for additional loans or credit. Balance sheets help current and potential investors better understand where their funding will go and what they can expect to receive in the future. Investors appreciate businesses with high cash assets, as this insinuates a company will grow and prosper.

Source:
https://www.sage.com/ca/Sage-Advice/Articles/19769/2015/6/16/What-are-balance-sheets-and-why-are-they-important