Question

‘Analysis of financial statements is useful and significant to different users.’ Which of the following users is concerned with a firm’s long-term solvency and survival?

Options

• Labour unions

• Trade payables

• Finance manager

• Lenders

Answer 1

Lenders

Explanation:

Lenders are most concerned about a company’s long-term solvency and survival because they need to know that it will be able to repay long-term loans and interest in the future.