Long-Term Creditors Are Usually Most Interested in Evaluating

question 97

Multiple Choice

Long-term creditors are usually most interested in evaluating

• A)liquidity.
• B)marketability.
• C)profitability.
• D)solvency.

---

Definitions:

Product Cost

The total expenses incurred to produce a product, including direct materials, direct labor, and manufacturing overhead, used to determine the cost of goods sold.

Advertising Expenses

Costs incurred in promoting a product, service, or company through various media.

Factory Workers

Labor force employed in a factory, responsible for direct and indirect manufacturing tasks.

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods.