As a potential creditor, you are interested in a company's ability to pay loan interest and principal as they come due. Which of the following would be of the greatest interest to you in your analysis?

Question

Quizplus · Accepted Answer

The statement of cash flows provides information on the company's cash inflows and outflows, which is crucial to assessing its ability to pay loan interest and principal as they come due. The income statement shows profitability but does not necessarily reflect cash availability, and the statement of shareholders' equity and Statement of Financial Accounting Standards do not directly provide information on cash flows.

As a Potential Creditor, You Are Interested in a Company's