When investors and creditors make investment and credit decisions, they need information to assist them in assessing future cash receipts.Their focus is on assessing the potential of generating
A)a return of investment of capital
B)a return on investment of capital
C)both a return of and a return on investment of capital
D)neither a return of nor a return on investment of capital

Question

Quizplus · Accepted Answer

Both a return of and a return on investment of capital are important factors that investors and creditors consider when making investment and credit decisions. A return of investment of capital refers to the repayment of the initial investment, while a return on investment of capital involves generating income or profit on the investment. Both of these factors are necessary to assess the potential profitability and sustainability of an investment.

When Investors and Creditors Make Investment and Credit Decisions, They