A_______ would most likely use an entity's financial report to determine whether or not the business entity is eligible for a loan.

Creditor

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Emplyoee

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Mangement

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None of the Above

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Solution

The correct option is C Creditor
There are two types of creditors.

Short term creditors are those who are providing goods or services on credit by analyzing the short-term financial position of the company.

Long term creditors are basically lenders who are providing loans to the business for long term purposes. These creditors uses the financial statements and reports to determine the financial worth and see the repayment capabilities of the firm before lending any amount.

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Similar questions

Q. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________________.

Q. _______ is a financial statement that shows the financial status of a business entity at a particular point of time.

___ represents revenue, expenses and financial result of a business entity.

Which concept is the reason behind accounting the cost of a small calculator as an expense and not as an asset in financial statements of a business entity?

Q. account tells whether the business entity has earned a profit or loss.

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