Both investors and creditors have an interest in a company's ability to generate favorable cash flows.

Question

Quizplus · Accepted Answer

Investors and creditors both have a financial stake in a company's success, and both rely on the company's ability to generate positive cash flows. Investors may be looking for a return on their investment in the form of dividends or stock price appreciation, while creditors want to ensure that the company is able to make timely payments on its debts. Both parties may analyze a company's cash flow statement to gauge its performance and potential for future success.

Both Investors and Creditors Have an Interest in a Company's