Who uses financial statements to assess whether the company will be able to pay its long term obligations?

Name: Who uses financial statements to assess whether the company will be able to pay its long term obligations?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Creditors, such as bondholders or banks, use financial statements to assess the company's ability to pay its long term debts. They look at metrics such as debt-to-equity ratio and interest coverage ratio to determine the risk of lending money to the company.

Who Uses Financial Statements to Assess Whether the Company Will