It Is Important to Remember When Assessing the Financial Soundness

Multiple Choice

It is important to remember when assessing the financial soundness of a company that:

A) if profits are adequate,there will be sufficient funds to pay salaries and fund cash flow.
B) cash flow is the key financial element in determining financial soundness.
C) revenues need to equal twice the debt load in order for the company to be viable.
D) the buyer is buying the past revenues and profits of the company.