Which one of the following is primarily interested in the liquidity of a company?
A) Government agencies
B) Shareholders
C) Long-term creditors
D) Short-term creditors

Question

Quizplus · Accepted Answer

Short-term creditors are primarily interested in the liquidity of a company because they want to ensure that the company has enough current assets to cover its current liabilities, which will allow the company to pay back the short-term loan or credit. Government agencies, shareholders, and long-term creditors may also be interested in the liquidity of a company, but it is not their primary concern.

Which One of the Following Is Primarily Interested in the Liquidity