Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

A) Income statement.
B) Balance sheet.
C) Statement of stockholders' equity.
D) Statement of cash flows.

Statement of Cash Flows

A financial report illustrating the total cash a company acquires through its operational endeavors and external financial sources, in addition to the cash spent on operational and investment activities over a defined period.

Balance Sheet

A financial statement that shows a company's financial position, detailing assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial report that summarizes the revenues, expenses, and profits/losses incurred during a specific period of time.