Investors and Creditors Are Interested in the Probability That Their

question 2

Multiple Choice

Investors and creditors are interested in the probability that their original investment or loan will eventually be returned,and that they will receive a reasonable return while their funds are invested or borrowed.These expectations are collectively referred to as:

• A)Expected profitability.
• B)The objectives of financial reporting.
• C)Cash flow prospects.
• D)Financial position.

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Definitions:

Promisee

An individual or entity to whom a promise or commitment is made.

Delegate Duty

The act of assigning one's responsibilities or tasks to another person, typically to someone subordinate.

Accountant

An accountant is a professional who performs financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Audits

Examination and evaluation of an organization's or individual's financial records to ensure accuracy and compliance with laws and regulations.