Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - IFRS Insights - IFRS Concepts and Applications - Page 35: IFRS1-6

Answer

Creditors are interested in the liquidity of an organization because liquidity indicates whether that organization has the potential to repay its credit. Comparatively, equity investors are interested in the stock performance of an entity. Moreover, equity inventors pay attention to an entity's going concern.

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