What are the primary items on a financial statement creditor

What are the primary items on a financial statement creditors are concerned with and why

Solution

Primary items on the financial statements about which creditors usually are concerned are:

(1) income—profit potential of the business, Because the more profit they make the more taxes they\'ll have to pay

(2) cash flows—ability of the business to generate cash, if more then usual cash flows in or out then again the business or the creditors might fall usder the IRF scanner.

(3) assets and debts— financial position. when we list our assets then they become taxable and that might be a concern.