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Trade payables analyse a company's financial statements mainly to judge its:
Ashort-term liquidity and ability to meet short-term obligations
Bdividend policy
Cmarket share price
Dlong-term solvency
Answer & Solution
Correct answer: A. short-term liquidity and ability to meet short-term obligations
Trade payables (short-term creditors) chiefly assess the firm's liquidity — its ability to meet short-term obligations.
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