Investors and creditors rely heavily on financial accounting information in making investment and lending decisions.

Question

Quizplus · Accepted Answer

Financial accounting information provides investors and creditors with important information about a company's financial performance, position, and cash flows. This information is used to assess the company's ability to generate profits, pay dividends, and repay debts. Therefore, investors and creditors heavily rely on financial accounting information in making investment and lending decisions.

Investors and Creditors Rely Heavily on Financial Accounting Information in Making