WAEC Financial Accounting 2025 Question 37

Question 37

Introduction to Accounting

A user of accounting information who would be more interested in the liquidity of the firm is the

  1. A.customer.
  2. B.supplier.
  3. C.tax authority.
  4. D.potential investor.
Show the answer and explanation

Answer: B (supplier.)

Explanation

Suppliers give credit, so they want to know whether the firm can pay its short-term debts.