Question 1
Introduction to AccountingA bank is interested in accounting information of a client for the purpose of
- A.evaluating the entity's share of the market.
- B.ascertaining the tax payable by the entity.
- C.assessing the credit worthiness of the customer.
- D.determining the dividend payable to shareholders.
Show the answer and explanation
Answer: C (assessing the credit worthiness of the customer.)
Explanation
A bank lends money, so it wants to know whether the client can repay.