Long-term creditors are usually most interested in evaluating
A) liquidity.
B) marketability.
C) profitability.
D) solvency.

Question

Quizplus · Accepted Answer

Long-term creditors are concerned with the ability of a company to meet its long-term obligations. Solvency, which refers to a company's ability to meet its long-term debt obligations, is therefore the most important consideration for long-term creditors. While liquidity and profitability are important considerations, they are not the primary focus of long-term creditors. Marketability, which refers to a company's ability to sell its products or services, is not directly relevant to a creditor's evaluation of a company's ability to repay its long-term debt.

Long-Term Creditors Are Usually Most Interested in Evaluating