Section A

Different stakeholders have different information needs from a company's financial statements.

Which stakeholder group is primarily interested in information about the company's ability to pay interest and repay principal on time?

Answer options:

Equity investors

Lenders

Employees

Suppliers

How to approach this question

Match the specific financial need (interest and principal repayment) to the stakeholder who provides debt finance.

Full Answer

B.Lenders✓ Correct

Lenders, such as banks and bondholders, provide debt finance. Their primary concern is the company's solvency and liquidity to ensure that interest payments and principal repayments are made on schedule.

Common mistakes

Selecting suppliers, who are interested in short-term payment ability but not interest/principal.

Question 32 All questions Question 34

Practice the full ACCA FA — Financial Accounting Practice Exam 5

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