just as blood pressure, weight, height, and cholesterol numbers can help a doctor determine the overall health of a person, the __________ can help a business owner understand the health of the business.

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Answer:

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The balance sheet can help the owner of a company to understand the health of the company, because through it are contained the assets and debts of a company, being able to generate consistent diagnoses through the indexes.

As in a person's health, where different factors support the determination of health status, in a company the balance sheet will contain the financial variables responsible for the company's success or failure, that is, its health.

The balance sheet helps the company to:

  • Management support.
  • Greater financial control.
  • Formulation of strategies.
  • Support decision-making.

Therefore, by recording the assets and liabilities of a company contained in the balance sheet, it is possible to carry out financial analyzes over a period of time and identify situations and problems for more effective decision-making.

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