The group of users that is most likely to require accounting information to assess the ability of a business to pay interest and repay a loan is:
A) employees.
B) lenders.
C) customers.
D) taxation department.

Question

Quizplus · Accepted Answer

Lenders are the group of users that are most likely to require accounting information to assess the ability of a business to pay interest and repay a loan. They need to evaluate the financial position of the business and its ability to generate cash flows to ensure that they can recover the loan amount with interest. Accounting information such as financial statements, cash flow statements, and ratios help them to assess the creditworthiness of the business.

The Group of Users That Is Most Likely to Require