Threat to Business Activity in Times of the Pandemic

Abstract

The accuracy of economic decisions depends on the quality of financial information, coming mainlyfrom financial statements prepared by economic and other entities. In times of the pandemic, the threats tocontinuing economic activity appear to be greater. Hence, there is a need to develop hedging instruments. Goodinformation could protect many entities from the risk of bankruptcy. Such entities need transparent, easy tocalculate indicators informing them about the impending crisis. When analysing exposures in financialstatements, one can see that their volume is constantly increasing and recipients complain about the decreasingreadability. The aim of the article is to create such information which would allow the entrepreneur to reactquickly and dynamically to the weakening of his activity to create simple indicators to assess the situation, toseparate items on the balance sheet, which would pose a risk of bankruptcy