Stella is assessing the financial stability of a company during a business acquisition. She is looking at the balance sheet of the company during a business meeting. Where can she find information about the bonds that the company needs to pay?

A. current assets
B. investments
C. intangible assets
D. stockholders’ equity
E. long-term liabilities

20 points

Respuesta :

Possibly long-term liabilities

Balance sheet: A balance sheet shows the financial strength of a company on a given day, which helps lenders and investors to assess the business’s strengths and to foresee potential or underlying risks.  

The balance sheet tells current and prospective investors about the amount of money the company has, the amount it owes creditors, its investments, and so on.

For instance, by comparing the balance sheets of two consecutive years, an investor can determine if a company’s long-term loans have increased or decreased. An increase in loans suggests that the company has not been paying off its long-term liabilities and is relying heavily on borrowed money.

Such an observation might discourage a potential investor from investing in the company.

Answer:

E. long-term liabilities

Explanation: