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Problem 1. Short-term creditors are usually most interested in evaluating
a. solvency.
b. liquidity.
C. marketability.
d. profitability.
Problem 2. Long-term creditors are usually most interested in evaluating
a. liquidity and solvency.
b. solvency and marketability.
C. liquidity and profitability.
d. profitability and solvency.
Problem 3. The formula for horizontal analysis of changes since the base period is the current year amount
a. divided by the base year amount.
b. minus the base year amount divided by the base year amount.
C. minus the base year amount divided by the current year amount.
d. plus the base year amount divided by the base year amount.
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You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.
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