Multiple choice

1. Short-term creditors are usually most interested in evaluating 

a. solvency. 

b. liquidity. 

c. marketability. 

d. profitability. 

2. Long-term creditors are usually most interested in evaluating 

a. liquidity and solvency. 

b. solvency and marketability. 

c. liquidity and profitability. 

d. profitability and solvency

3. "Generally accepted" in the phrase generally accepted accounting principles means that the principles 

a. are proven theories of accounting. 

b. have substantial authoritative support. 

c. have been approved by the Internal Revenue Service. 

d. have been approved for use by the managements of business firms. 

4. The information for preparing a trial balance on a worksheet is obtained from 

a. financial statements. 

b. general ledger accounts. 

c. general journal entries. 

d. business documents.