Question

Which external user of accounting information is most interested in knowing the long term solvency position of the firm

Answer 1

Explanation:

Shareholders, Creditors, Government Agencies, Equity Shareholders, etc.

Answer 2

Banks and Financial companies are external user of accounting information

Explanation:

• Banks and Financial companies are the external users of accounting information which is most interested in knowing the long term solvency position of the firm.

• These banks and Financial companies reviews the financial reports of the firm to ensure themselves that the money which they have lended is safe and to ensure when the company will be able to repay their money along with the interest.

• Banks and Financial companies are important external users of accounting information.

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Which external user of accounting information is most interested in knowing the long term solvency position of the firm

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