Which one of the following is primarily interested in the liquidity of a company?
A) Federal government
B) Stockholders
C) Long-term creditors
D) Short-term creditors

Question

Quizplus · Accepted Answer

Short-term creditors primarily want to know if a company has enough current assets (such as cash and inventory) to cover its current liabilities (such as accounts payable and short-term loans). This shows the company's ability to meet its short-term obligations and is an indicator of its liquidity.

Which One of the Following Is Primarily Interested in the Liquidity