Information for analyzing how business is performing

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a) The balance sheet, income statement, and statement of cash flows each offer important pieces of information for analyzing how a business is performing. To truly understand these documents, it is helpful to know what they cannot tell you. Using information in this chapter, list some of the limitations of each of these three financial documents.

b) Many hotels experience difficulty when establishing credit policies. List 5 factors you think would be important when determining whether to offer credit terms to a new client at your hotel. Explain your reasons for choosing each factor.

Reference no: EM132275909

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