Owners' equity is meaningful information for investors, but not for lenders.

Name: Owners' equity is meaningful information for investors, but not for lenders.
Brand: Quizplus
Rating: 4.7 (63 reviews)

Question

Quizplus · Accepted Answer

Owners' equity is meaningful information for both investors and lenders, as it represents the portion of assets that is owned by the owners themselves. Lenders are interested in owners' equity as it represents a cushion of assets that can cover the company's liabilities in case of financial difficulties.

Owners' Equity Is Meaningful Information for Investors, but Not for Lenders