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WAEC Accounting 2024 Objective — Question 1

Question 1 of 50 from the West African Examinations Council (WAEC) Accounting 2024 Objective paper, with the correct answer and a full explanation.

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A bank is interested in accounting information of a client for the purpose of

  • A. evaluating the entity's share of the market
  • B. ascertaining the tax payable by the entity
  • C. assessing the credit worthiness of the customerCorrect
  • D. determining the dividend payable to shareholders

Explanation

Banks examine a business's financial statements mainly to assess how creditworthy the business is before lending.

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