Mohammed started his company with OMR 25,000 which sells food stuffs. The company 120 employees. He normally buys the raw materials for production both on cash and credit from Mr. Ahmed and company, Muscat. The company's financial statements are prepared every year without fail. Q1. The company which supplies raw materials to Mohammed on credit will be known as: Q2. Creditors of the business will be interested in accounting information: To evaluate the risks of granting credit or lending money. To decide on buying or selling of shares of the company. To verify whether company complies with tax law. To know whether the company operates within prescribed rules.

Mohammed started his company with OMR 25,000 which sells food stuffs. The company 120 employees. He normally buys the raw materials for production both on cash and credit from Mr. Ahmed and company, Muscat. The company's financial statements are prepared every year without fail. Q1. The company which supplies raw materials to Mohammed on credit will be known as: Q2. Creditors of the business will be interested in accounting information: To evaluate the risks of granting credit or lending money. To decide on buying or selling of shares of the company. To verify whether company complies with tax law. To know whether the company operates within prescribed rules.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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