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

Question

Quizplus · Accepted Answer

Short-term creditors are mainly interested in evaluating liquidity, which refers to the ability of a company to meet its short-term obligations as they come due. This is important for creditors because they want to ensure that the company has enough cash or liquid assets to repay the debt they have incurred. Solvency is a measure of a company's ability to meet its long-term obligations, and profitability and marketability are important for investors and shareholders but are not the main concern for creditors.

Short-Term Creditors Are Usually Most Interested in Evaluating