A Short-Term Creditor Is Primarily Interested in the __________ of the Borrower

question 133

Multiple Choice

A short-term creditor is primarily interested in the __________ of the borrower.

• A)liquidity
• B)profitability
• C)consistency
• D)solvency

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Definitions:

Gross Investment

The total expenditure on new capital assets plus the replacement of depreciated assets within an economy in a specific time period.

Net Domestic Product

The aggregate worth of every product and service generated inside a nation over a particular timeframe, deducting depreciation.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a specific time period, indicating economic health.

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.