Stockholders typically want to view a firm's accounting information to _____.
A) find if the firm can pay for the orders that it places
B) discover possible layoffs in the near future
C) assess the firm's creditworthiness
D) know if management has generated a strong enough return on their investment

Question

Quizplus · Accepted Answer

Stockholders invest in a company to make a return on their investment. They want to know the profitability of the company and whether management has generated a strong enough return on their investment. Therefore, they want to view the firm's accounting information to assess its financial performance. The other options, such as finding if the firm can pay for orders or discovering possible layoffs, may be of interest to some investors, but they are not the primary concerns of most stockholders. Assessing creditworthiness is important for lenders and creditors, not necessarily stockholders.

Stockholders Typically Want to View a Firm's Accounting Information to _____