Question

Statement I: Owners need accounting information to know the profitability and financial soundness of their investment.

Statement II: Creditors require accounting information to assess the credit worthiness and repaying capacity of the firm.

विकल्प

• Only I is correct.

• Only II is correct.

• Both I and II are correct.

• Both I and II are wrong.

Answer 1

Both I and II are correct.

Explanation:

Owners use accounting information to judge profitability and financial soundness, while creditors use it to assess creditworthiness and repayment capacity. Hence, both statements are correct.