ACC 280 / XACC 280 : E1-2 (a) The following are users of financial statements

ACC 280 / XACC 280

Axia College of University of Phoenix (UoP)

Principles of Accounting

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

ACC 280 / XACC 280 Solution
Help in ACC 280
Help in XACC 280

Exercise 1-2 (E1-2) (a) The following are users of financial statements.
______Customers
______Securities and Exchange Commission
______Internal Revenue Service
______Store manager
______Labor unions
______Suppliers
______Marketing manager
______Vice-president of finance
______Production supervisor
Instructions
Identify the users as being either external users or internal users.

(b) The following questions could be asked by an internal user or an external user.
______Can we afford to give our employees a pay raise?
______Did the company earn a satisfactory income?
______Do we need to borrow in the near future?
______How does the company’s profitability compare to other companies?
______What does it cost us to manufacture each unit produced?
______Which product should we emphasize?
______Will the company be able to pay its short-term debts?
Instructions
Identify each of the questions as being more likely asked by an internal user or an external user.

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