Which measurement system would seem most relevant to creditors?

Question

Quizplus · Accepted Answer

Creditors would be most interested in the fair value measurement system as it reflects the current market price of assets and liabilities, providing them with the most accurate and relevant information about the value of their investment. Historical cost does not reflect changes in the market and may not be relevant to creditors. Current cost and deprival value are also not as commonly used as fair value in accounting.

Which Measurement System Would Seem Most Relevant to Creditors