(Identifying the objectives of financial reporting, LO 6, 7) For each of the following entities, identify the objectives of financial reporting that the preparers of the financial statements might have. In answering, consider who the users of the financial statements might be and which user(s) would be most important to the preparers. Explain how the objectives of financial reporting would influence the accounting choices made by the preparers.

a. A family-owned corporation that is planning to sell shares to the public and become a public company that is traded on a stock exchange.

b. A charity that raises money to buy and distribute food to hungry children around the world.

c. A private corporation that provides consulting services to restaurants. The company has one shareholder who is also president of the company. The company has a small bank loan and no other major creditors.

d. A private company with a large labour union that is preparing for negotiations with the union.

e. An accounting firm partnership that uses accounting income to determine the amount of tax the partners pay and the compensation the partners receive.

f. A public company that has been adversely affected by international competition and that is trying to receive subsidies from government.

g. A private corporation that repairs commercial vehicles. The company has one shareholder who is also president of the company. The company urgently needs cash.