Accounting information is used by investors and creditors of a company to predict
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Correct Answer: Option C
Explanation:
The average lender or investor does not have ongoing inside access to the day-to-day operations of a company. Instead, it relies on financial accounting to provide accurate and readily comparable information. Financial accounting allows outside actors to observe the profitability and value of a business.
Creditors are interested in accounting information, because it enables them to determine the credit worthiness of the business.
The average lender or investor does not have ongoing inside access to the day-to-day operations of a company. Instead, it relies on financial accounting to provide accurate and readily comparable information. Financial accounting allows outside actors to observe the profitability and value of a business.
Creditors are interested in accounting information, because it enables them to determine the credit worthiness of the business.