Users of Accounting Information Select the financial statement user most likely to use accounting information in the

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Users of Accounting Information Select the financial statement user most likely to use accounting information in the manner indicated and explain why:

a. (owner or vendor) Determine the frequency with which dividends are paid.

b. (employee or creditor) Determine whether salary levels are comparable to other companies in the industry.

c. (regulator or creditor) Compare profit ratios to other companies to see if a company has excess earnings.

d. (taxing authority or employee) Determine whether the company has correctly computed sales tax withholdings.

e. (public interest group or manager) Estimate the cost of cleaning up waste materials being discharged into a local river.

f. (manager or owner) Establish the most efficient number of parts to ship to a major customer at one time.

(regulator or manager) Set the maximum amount of goods to be shipped without requiring prepayment.

h. (owner or employee) Evaluate whether to purchase additional shares of the company.

i. (regulator or vendor) Set limits on the amount of debt a public utility can issue.
j. (employee or manager) Choose which products to sell after a new labor contract has been negotiated.

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Financial Accounting A Decision Making Approach

ISBN: 9780471328230

2nd Edition

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

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