Based on the terms of the credit and the purpose,the objectives of financial statement analysis by creditors will vary.

Question

Quizplus · Accepted Answer

The objectives of financial statement analysis by creditors will depend on the terms of the credit and the purpose for which the analysis is being conducted. For example, a creditor may be interested in analyzing the financial statements of a borrower to determine their creditworthiness and ability to repay a loan. Another creditor may be interested in analyzing the financial statements of a potential borrower to assess their ability to comply with the terms of the loan or the overall health of their business. Therefore, the objectives of financial statement analysis by creditors will vary.

Based on the Terms of the Credit and the Purpose,the