Creditors are most concerned with assessing:
A) dividends and future share prices
B) earnings-per-share
C) short-term liquidity
D) gross margin percentages

Question

Quizplus · Accepted Answer

Creditors are mainly concerned about the borrower's ability to repay the debt on time. Therefore, they focus on short-term liquidity, which reflects a company's ability to meet its financial obligations in the near future. Dividends, future share prices, earnings-per-share, and gross margin percentages are not as relevant to creditors when assessing creditworthiness.

Creditors Are Most Concerned with Assessing