In countries where debt financing is more common (Japan)compared to equity financing,there is greater emphasis on reporting the ability of the company to earn profits for its investors rather than the ability to repay debt.

Question

Quizplus · Accepted Answer

The statement is opposite to the actual scenario. In countries where debt financing is more common, there is greater emphasis on reporting the ability of the company to repay debt rather than its ability to earn profits for investors.

In Countries Where Debt Financing Is More Common (Japan)compared to Equity