Long-Term Creditors Are Usually Most Interested in Evaluating

question 152

Multiple Choice

Long-term creditors are usually most interested in evaluating

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

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Definitions:

Great Depression

A major global financial crisis that occurred in the 1930s.

Annual Revenues

The total amount of income generated by a business, government, or organization from its activities over the course of a year before any costs or expenses are deducted.

Budget Deficits

A situation where a government's expenditures exceed its revenues, resulting in the need to borrow money.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by widespread unemployment, deflation, and a significant drop in global trade and output.