Asked by Priyadarshi Samal on May 29, 2024

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Verified

Creditors' information needs revolve around all of the following decisions, except

A) extending credit
B) maintaining a credit relationship
C) not extending credit
D) investing in credit instruments

Creditors' Information

Financial data and other information about a debtor that is shared with or accessible to creditors, often used in assessing credit risk or in making lending decisions.

Extending Credit

The act of providing goods, services, or money to a borrower under the agreement that repayment will occur at a later date.

Investing

Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.

  • Recognize the contrasting focuses and information outputs between managerial and financial accounting.
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Verified Answer

EW
Emma WilkersonMay 29, 2024
Final Answer :
D
Explanation :
Creditors' information needs do not revolve around investing in credit instruments, as they are the ones lending money, not seeking to invest it. Their information needs are focused on deciding whether or not to extend credit, maintain a credit relationship, or not extend credit altogether.