passwella.
Menu

JAMB Principles of Accounts 1997 Question 3

Question 3

Introduction to Accounting

Creditors use Accounting information for the purpose of

  1. A.planning sales to a company
  2. B.controlling a company's affairs
  3. C.investing in a company
  4. D.assessing a company's liquidity.
Show the answer and explanation

Answer: D (assessing a company's liquidity.)

Explanation

Creditors want to know whether the company can pay its debts, i.e. its liquidity.