External users of accounting information, Accounting Basics

Assignment Help:

Q. External users of accounting information?

The external users of accounting information grouped into groups; everyone has different interests in the company and wants answers to unique questions. The six groups and some of their possible questions are:

• Owners and potential owners. Has the company earn satisfactory income on its total investment? Necessity an investment is made in this company? Must the present investment be decreased, increased or retained at the same level? Be able to the company install costly pollution control equipment and still be profitable?

• The Lenders and Creditors. Must a loan be granted to the company? Will the company can pay its debts as they become due?

• The Employees with their unions. Does the company have the capability to pay increased wages? Is the company financially capable to offer long-term employment for its workforce?

• Customers. Does the company tender useful products at fair prices? Will the company continue to exist long enough to honour its product warranties?

• Governmental units. Is the company such like a local public utility charging a fair rate for its services?

• General public. Is the company providing valuable products and gainful employment for citizens without causing serious environmental problems?


Related Discussions:- External users of accounting information

Function and scope of the accounting standards board, Function and scope of...

Function and scope of the Accounting Standards Board: The major function of ASB is to originate accounting standards so that the Council of the Institute in India may set up su

Concept of accountability, Problem It is usually recognized that power ...

Problem It is usually recognized that power is an essential component of accountability and that greater accountability is recognized towards those stakeholders who have more p

Describe about borrowed money, Q. Describe about Borrowed money? The co...

Q. Describe about Borrowed money? The company lent USD 6000 from Chaney's father. Chaney signs the note for the company. The note turn off no interest and the company promised

Define operating expenses, Q. Define Operating expenses? Operating expe...

Q. Define Operating expenses? Operating expenses for a merchandising company are those expenses other than cost of goods sold incurred in the usual business functions of a comp

What do you mean by liabilities, Q. What do you mean by Liabilities? Li...

Q. What do you mean by Liabilities? Liabilities are the debts outstanding by a business. Usually a business should pay its debts by certain dates. A business acquires many of i

Research state and local governmental financial accounting, You recently la...

You recently landed your dream job working for the state as an accountant. You are given the task to research several state and local governmental financial accounting issues. F

Review, 1. State the equity equation. 2. Which account represents the begi...

1. State the equity equation. 2. Which account represents the beginning equity figure? 3. In which accounts are changes to equity recorded? 4. How do drawings affect the calculati

The use of ledger accounts, The use of ledger accounts A journal entry ...

The use of ledger accounts A journal entry is similar to a set of instructions. The execution of these instructions is known as posting. Since stated earlier posting is recordi

How to deal with this problem?, How to create account for barter transactio...

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

#ti, 10% preference share 336 ooo ordinary share capital 480 000 prepare a...

10% preference share 336 ooo ordinary share capital 480 000 prepare a statement of profit or loss

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd