Creditors who are expecting to be paid are most interested in which of the following for an entity?
A)Liquidity
B)Operating cycle
C)Gross margin
D)Profitability

Question

Quizplus · Accepted Answer

Creditors are most interested in an entity's liquidity because it refers to the ability of the entity to meet its short-term obligations. This is important to creditors because they want to ensure that the entity can repay its debt on time. Operating cycle, gross margin, and profitability are important factors for analyzing an entity's financial performance, but they may not be as relevant for creditors who are primarily concerned with the entity's ability to repay its debt.

Creditors Who Are Expecting to Be Paid Are Most Interested