Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.2E
To determine
Users of accounting information: Accounting is language of business, its primary task is to communicate economic information to permit informed judgment by its users. Users of accounting information can be classified as internal users and external users.
Internal users: these are primarily the managers and decision makers within the organization.
External Users: All other groups are external users such as shareholders, financers, IRS, and creditors, etc.
the user most likely to use the accounting information using need information provided.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Identifying users of accounting information
For each of the users of accounting information, identify whether the user is an external decision maker (E) or an internal decision maker (I):
Customer
Company manager
Internal Revenue Service
lender
Investor
Controller
Cost accountant
External users of fi nancial accounting information includeall of the following except:a. Investors. c. Line managers.b. Labor unions. d. General public.
Describe the organization of public accounting firms and identify the variousservices that they offer.
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
Knowledge Booster
Similar questions
- Discuss what information would be most useful for these users of accounting information: Management Employees Investors Creditors Customers Tax authoritiesarrow_forwardDefine each of these users of accounting information as an internal user of external user Management Employees Investors Creditors Customers Tax authoritiesarrow_forwardExternal users of accounting information would include ________________. employees managers investors supervisorsarrow_forward
- how managers (internal user) and customers (external user) use accounting information? Give one real-life example for each userarrow_forwardWhich of the following users would be considered an internal user and would use managerial accounting reports? Select answer from the options below credit - rating agency security regulator financial institution chief operating officerarrow_forwardIdentify the following users of accounting information as either an (a) external or (b) internal user. Marketing managerarrow_forward
- Required information Accounting is an information and measurement system that aims to identify, record, and communicate information about business activities. It helps assess opportunities, products, investments, and social and community responsibilities. Users of accounting are both internal and external. Some users and uses of accounting include (a) managers in controlling, monitoring, and planning; (b) lenders for measuring the risk and return of loans; (c) shareholders for assessing the return and risk of stock; and (d) employees for judging employment opportunities. Opportunities in accounting include financial, managerial, and tax accounting. 430s :00 / 1:27 1x Knowledge Check 01 Select the correct term for the following types of users: Users Terms Customers Purchasing manager Marketing Manager Suppliers Labor Unionarrow_forwardFinancial accounting provides information for managers and other internal users.arrow_forwardWhat are some of the major challenges facing the accounting profession?arrow_forward
- Identify the following questions as most likely to be asked by an internal (I) or an external (E) userof accounting information. What are the costs of our service to customers?arrow_forwardThe person MOST likely to use management accounting information is a: Select one: O a. banker evaluating a credit application. Ob. shareholder evaluating a stock investment. Oc assembly department supervisor. Od. governmental taxing authority.arrow_forwardIn community what are the examples of decisions or questions that can be supported by accounting information.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College