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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?
consumer mind is a black box
Q. Explain about Purchase returns and allowances? Purchase returns and allowances A purchase return takes place when a buyer returns merchandise to a seller. When a buyer recei
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I am requesting for literature review and past studies on CDS.
After going through this section, you should be capable to: Appreciate the needs for a conceptual framework of accounting; understand and appreciate the Generally Accept
Enumerate the fundamentals of financial accounting information Frame works and principles which have been developed try to address fundamental questions like: ?Who are user
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