Aspects of the financial statements may have different relevance to investors and creditors.Which of the following types of information are consistent with the concerns of these two parties?
A)Investors: Dividends;Creditors: Sufficient cash to make loan payments
B)Investors: Cash flows from investing activities;Creditors: Dividends
C)Investors: Sufficient cash to make loan payments;Creditors: Cash flows from investing activities
D)Investors: Sufficient cash to make loan payments;Creditors: Stock prices

Question

Quizplus · Accepted Answer

Creditors are interested in whether the company's cash flows from operating activities are sufficient to make payments on loans and other liabilities.Investors look for intermediate and long-term returns on their contributions to the company,through dividends and stock price increases.

Aspects of the Financial Statements May Have Different Relevance to Investors