Solvency is of most interest to
A) short-term creditors.
B) stockholders.
C) competitors.
D) long-term creditors.

Question

Quizplus · Accepted Answer

Solvency refers to a company's ability to meet its long-term financial obligations. Therefore, it is of most interest to long-term creditors who have invested in the company and expect repayment of their investments over a longer period of time. Short-term creditors, such as suppliers or lenders, are primarily concerned with a company's liquidity and ability to pay its short-term debts. Stockholders are more interested in a company's profitability and earnings potential. Competitors may be interested in a company's solvency as a way to evaluate their own position in the market, but it is not their primary concern.

Solvency Is of Most Interest to