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    Financial info: Compare the uses of creditors to investors

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    Compare and contrast the uses of financial accounting information by 1) investors and 2) creditors. In your opinion, does one group rely more heavily on the information than the other?

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    Solution Preview

    Investors use financial information to evaluate performance of current management to see if they want them to continue or be replaced. They also use financial information to make judgments about likely future cash flows. The higher the future cash flows, the better the investment looks ...

    Solution Summary

    Your tutorial is 183 words plus a reference and explains how creditors are interested in different aspects of financial condition than investors.