Which of the following assesses the capability of a business to pay its obligation, including related interests on maturity dates?
Understand the Problem
The user has provided a series of multiple-choice questions related to accounting principles, financial statement analysis, and business decision-making. The questions cover topics such as assessing a business's ability to pay obligations, using financial information for financing decisions, accounting processes, and various accounting principles.
Answer
C. Creditors
The answer is C. Creditors
Answer for screen readers
The answer is C. Creditors
More Information
Creditors are concerned with the business's ability to repay its debts, including interest, on time. They assess the risk of lending money to the business.
Tips
Students may confuse creditors with investors, but investors are more concerned with the potential for profit and growth, while creditors are primarily concerned with repayment of debt.
Sources
- FABM-1-FINAL.docx - Performance Task #1 1. Auditing SGV - coursehero.com
- Chapter 2 FABM - sumarry - CHAPTER 2- Branch of Accounting ... - studocu.com
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