Home » Classroom » JSS3 Business studies Balance sheet Question

Why is it important for a company to maintain a... - JSS3 Business studies Balance sheet Question

Why is it important for a company to maintain a balance between its assets and liabilities?

Maintaining a balance between assets and liabilities ensures the company can meet its financial obligations and continue operating smoothly. Too many liabilities relative to assets could indicate financial risk, while too few liabilities might mean the company is not leveraging enough for growth.

Please share this, thanks:

Add your answer

Notice: Posting irresponsibily can get your account banned!

No responses