Often loan agreements require the borrower to comply with certain requirements,such as maintaining a particular current ratio or limiting future borrowing.To decide if a company has complied with its loan covenants,a creditor would look at the company's:
A)financial statements.
B)chart of accounts.
C)bank statements.
D)charter.

Question

Quizplus · Accepted Answer

Creditors use financial statements to assess compliance with loan covenants.

Often Loan Agreements Require the Borrower to Comply with Certain