Question
Company A is in the early stages of its existence. The only projects it has are still at the stage of idea, plans, and initial
Company A is in the early stages of its existence. The only projects it has are still at the stage of idea, plans, and initial work. Company B is well established with projects that are functioning. People have provided capital to each company. Which set of capital-providers are more likely to use accounting reports to monitor covenants?
Providers of capital to Company A will use accounting reports to monitor compliance with covenants. | ||
Providers of capital to Company B will use accounting reports to monitor compliance with covenants. | ||
Providers of capital to Company A will use accounting reports to evaluate return on assets | ||
None of the above |
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