Question

Select the correct answer.

Which statement regarding a company's financial status is true?
O A
An investor generally prefers to invest in a company with a high inventory.
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B.
A company's reputation cannot be a part of its goodwill.
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It is easier to liquidate fixed assets than current assets.
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D.
A company's cash balance cannot include a loan taken out by it.
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E.
A company's debt, such as a bank loan, should decrease steadily over the years.
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Answer 1

E

Step-by-step explanation:

Plato

Answer 2

A company's debt, such as a bank loan, should decrease steadily over the years.

Step-by-step explanation:

As a company services its loan, the debt should decrease over time. Generally, companies spread their debts over a long time. The debt obligation will keep on reducing as the company services the loan.

After the expiry of the loan repayments period, the company should expect to have cleared the loan.