USERS OF ACCOUNTING INFORMATION- part II

Which of the following statements is true about external users?

• Internal uses are people outside the company

• Employees are only interested in the information generated by financial records.

• These people utilize their own money and resources to invest into a company.

• They are people within the company directly involved in business operations.

These external users determine the borrower’s ability to meet scheduled payments using the accounting information of a company.

• Creditors

• Potential investors

• Government and Tax Authorities

• Competitors

The use of financial reports for this user is to enable them to determine whether the company's loans and their interest attaching to them will paid when due.

• TAX AUTHORITIES

• INVESTOR

• CREDITOR

• EMPLOYEES

These people utilize their own money and resources to invest into a company.

• Owner

• Regulatory agencies

• Creditors

• Potential Investors

They used the accounting information to determine how much business earns in order to assess its tax liabilities.

• GOVERNMENT AND TAX AUTHORITIES

• CREDITORS

• INVESTORS

__________________ use a company’s financial information and regulations to determine if its financial statement are in accordance with the rules and regulations.

• Government and Tax authorities

• Regulatory agencies

• Law makers

• competitors

This group is interested in information about the continuance of an enterprise, specially when they have a long term involvement with or are dependent on the company’s offerings either in the form of goods or services.

• customers

• law makers

• economic planner

• government

They used the accounting information to Check the development and changes in services and products of its rivalry.

• creditors

• law makers

• competitors

• government

Which of the following is not an example of external users.

• competitors

• costumers

• investors

• managers

If you are the owner of a sari - sari store, which of the following questions you may consider that an accounting can support?

• How much revenue have I earned for this period?

• what is the value of my inventory?

• How much are my receivables?

• All of these.