Identifying accounting users and uses C2
Part A. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user of accounting information.
______ 1. What are reasonable payroll benefits and wages?
______ 2. Should we make a five-year loan to that business?
______ 3. What are the costs of our products ingredients?
______ 4. Do income levels justify the current stock price?
______ 5. Should we spend additional money for redesign of our product?
______ 6. Which firm reports the highest sales and income?
______ 7. What are the costs of our service to customers?
Part B. Identify the following users of accounting information as either an internal (I) or an external (E) user.
______ 1. Research and development director
______ 2. Human resources director
______ 3. Nonexecutive employee
______ 4. Shareholders
______ 5. Distribution managers
______ 6. Creditors
______ 7. Production manager
______ 8. Purchasing manager
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Financial Accounting: Information for Decisions
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