Question:medium

'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?

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Different users focus on different aspects:

Short-term creditors (Trade payables) \(\Rightarrow\) Liquidity ratios
Long-term creditors (Lenders) \(\Rightarrow\) Solvency ratios (Debt-Equity, Interest Coverage)
Investors \(\Rightarrow\) Profitability and growth
Management \(\Rightarrow\) All aspects for decision-making
Labour unions \(\Rightarrow\) Profitability and wage-paying capacity

Lenders care most about long-term survival!

Updated On: Mar 9, 2026

Labour unions
Trade payables
Finance manager
Lenders

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The Correct Option is D

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