Eliza has just opened a new business near campus that is a combination of a laundromat, a nail salon, and a tanning studio. there is an accounting firm located just down the street and eliza is paying them to do all of her accounting. at the end of the first quarter (three months of business), eliza has several questions about how things are going. if she wants to understand how much debt the business has right now, then she should look at the that her accountant has prepared.
a. the income statement
b. the statement of owner’s equity
c. the balance sheet

The correct answer is the statement of cash flows

Explanation:

Note: The correct option is missing in the question. So, providing the answer.

The statement of cash flows is the statement which states the cash inflows and the cash outflows of the business or the firm during the year or a period of time. It is used for determining or evaluated the amount of cash the business has in order to cover the debt at the end of the period.

So, Eliza wants to see that how much debt she has, she will look at the the statement of cash flows, which is prepared by the accountant.

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