Users of Accounting Information and Their Needs Listed below are a number of the important users of
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Company management Banker
Stockholder Supplier
Securities and Exchange Commission Labor union
Internal Revenue Service
User Group Needs Information About
_____________________1. The profitability of each division in the company
_____________________2. The prospects for future dividend payments
_____________________3. The profitability of the company since the last contract with the workforce was signed
_____________________4. The financial status of a company issuing securities to the public for the first time
_____________________5. The prospects that a company will be able to meet its interest payments on time
_____________________6. The prospects that a company will be able to pay for its purchases on time
_____________________ 7. The company’s profitability based on the tax code
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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