Question

which of the following is an area of interest for creditors while using accounting information.
profitability
long term solvency
estimating national income
liquidity of the business
​

Answer 1

Answer:

The limitations of a globe are: A globe cannot give the correct idea of the distances between two places. A globe is too small to get the actual size of an area. The types of terrain and landscape of a place cannot really be figured on a globe.

Answer 2

Answer:

long term solvency

Explanation:

long term solvency is an area of interest for creditors while using accounting information.

• Solvency ratio are calculated to assess the ability of the firm to meet its long term liabilities as and when they become due.
• these ratios reveal as to how much in a business has been invested by owners and how much amount has been raised from outside sources.
• Solvency ratio discloses the firm's ability to meet the interest regularly and long term debt costs.
• solvency ratio includes

1. Debt Equity ratio
2. Total Assets to Debt Ratio
3. Proprietary Ratio
4. Interest Coverage Ratio

Therefore, The interest of creditors will have been finding out that the firm is able to meet its long term liabilities or not.

#SPJ3