Question

Two companies asked you to invest in them as part of the owner. However, you

can only afford to give money to one company. You want to know which of the two
companies (Company A or Company B) is the better choice. Both of them are in the
same industry. Company A and Company B generated net income in the past year of
P1,000,000 and P900,000, respectively. Looking at the Statement of Financial Position
(SFP), you found out that Company A and Company B has reported total assets of P10,000,000 and P8,000,000, respectively. Based on the information, which company
will you choose? Why?

Answer 1

i will choose company A

Step-by-step explanation:

because,based on the past information,they generated more income than company B.Also, based on their assets, company A has more asset than company B