In analyzing and interpreting financial statement information three major characteristics are generally evaluated: (1)____________ (2)_____________ and (3)_____________.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Profitability

Refers to a company's ability to generate income relative to its revenue, operating costs, and other expenses over a certain period.

Solvency

The ability of a business to meet its long-term debts and financial obligations.