Read the following information and answer the question. "If we examine the balance sheets of the past five years, it reveals that the amount of l...
Question
Read the following information and answer the question.
"If we examine the balance sheets of the past five years, it reveals that the amount of loans taken by the company against fixed assets has consistently increased, resulting in poor financial health of the company this year." - Financial report of Company B.
Which of the following can be logically inferred from the statement in the financial report of Company B?
- Reducing the amount of loans against fixed assets will enhance the financial health of Company B.
- The value of fixed assets of Company B has declined due to taking loans against them.
- Analyzing the balance sheets of a company provides insight into its financial health.
- Company B did not take any loans in any financial year other than the mentioned five years.