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Question

Financial statements help the investors to assess __________solvency.

A
fixed
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B
immediate
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C
current
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D
long term
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Solution

The correct option is D long term
Investors are the owners of the company. Financial statements help them to assess the long term solvency of the business in which they have invested. They asses whether they will get fair returns or not for the money they have invested in the business.

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