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

Interpret the coefficients , A Use the CPS data to calculate mean log(wage)...

A Use the CPS data to calculate mean log(wage) for women and men. log(wage) is coded as the variable LNWAGE and the variable FE is coded 1 for female and 0 for male.) First use the

Weighted-average under periodic inventory procedure, Weighted-average under...

Weighted-average under periodic inventory procedure the weighted-average method of inventory costing is a income of costing ending inventory using a weighted-average unit cost. Com

Statement of cash flow, in cash flow statement, deductions from cash expenc...

in cash flow statement, deductions from cash expences and payments to creditor. how do you get this answer

Tax specialist, While mainly students are aware that accountants frequently...

While mainly students are aware that accountants frequently assist their clients with tax returns and other tax issues, few are aware of the large number of diverse and challenging

What is fixed cost, Q. What is Fixed cost? Fixed cost -- a cost that do...

Q. What is Fixed cost? Fixed cost -- a cost that doesn't change as sales volume changes (in the short run.) Fixedcosts generally include such items as rent, interest, depreciat

What is cost-benefit, Q. What is Cost-benefit? Cost-benefit The cost-be...

Q. What is Cost-benefit? Cost-benefit The cost-benefit consideration engrosses deciding whether the benefits of including optional information in financial statements exceed th

Components of profit and loss account, Components of Profit and Loss Accoun...

Components of Profit and Loss Account The Profit & Loss Account intend to check profit. It has three parts. 1) The Trading Account: These account the money in (revenue)

Total liabilities, A) During the year, total liabilities enhanced $106,010 ...

A) During the year, total liabilities enhanced $106,010 and stockholders' equity reduced $67,590. What is the amount of total assets at the end of the year? B)  If total assets e

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