FABM1 Chapter Test 3

What is accounting information primarily used for?

• Making decisions
• Advertising
• Hiring employees
• Designing products

Which of the following is an internal user?

• Investor
• Creditor
• Owner
• Customer

Who is responsible for operational efficiency in a company?

• Employees
• Management
• Government
• Consumers

Which user assesses creditworthiness of a business?

• Customers
• Creditors
• Owners
• General public

Who uses financial data to analyze market trends?

• Investors
• Research scholars
• Consumers
• Employees

Who uses tax filings for revenue collection and policy making?

• Owners
• Government
• Customers
• Management

Employees use accounting information to assess:

• Competitor pricing
• Job security
• Product loyalty
• Consumer ethics

Who reviews income statements for dividend evaluation?

• Consumers
• Employees
• Investors
• Government

Who are considered external users?

• Owners, management, employees
• Creditors, investors, government
• Management, employees, owners
• None of the above

Who uses pricing and quality reports to decide on purchases?

• Consumers
• Government
• Employees
• Regulatory authorities