Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

Which of the following user is interested in knowing borrowing capacity of the organisation at the time of analysis?

Options:

Employees and Trade Union

Bankers and lenders

Researchers

Competitors

Correct Answer:

Bankers and lenders

Explanation:

The correct answer is Option (2) → Bankers and lenders

Bankers and lenders are interested in knowing the borrowing capacity of the organization at the time of analysis. They need this information to assess the organization's creditworthiness and make decisions about lending money or providing financial support.