Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Question

Quizplus · Accepted Answer

Investors and creditors rely heavily on accounting information when making decisions about which businesses to invest in or lend money to. Financial statements, such as balance sheets and income statements, provide key information about a company's financial health and performance, helping investors and creditors assess the level of risk and potential return associated with providing resources to the business.

Investors and Creditors Use Accounting Information to Identify the Businesses