Asked by Jasmine Montero on Jun 10, 2024
Verified
Suppliers monitor the financial statements of their customers to protect collection of their accounts receivable.
Accounts Receivable
Money owed to a company by its customers from the sale of products or services on credit.
Financial Statements
Reports that give a snapshot of a company's financial health, featuring the balance sheet, income statement, and cash flow statement.
- Understand the diverse applications of financial statements for various stakeholders, including regulators, tax authorities, and those issuing loans.
Verified Answer
JR
JustFor RedditJun 12, 2024
Final Answer :
True
Explanation :
Suppliers often monitor the financial statements of their customers to keep an eye on their creditworthiness and financial stability. This helps them assess any potential risks and take preventative measures to protect their accounts receivable and ensure timely collections.
Learning Objectives
- Understand the diverse applications of financial statements for various stakeholders, including regulators, tax authorities, and those issuing loans.
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