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What would a company be most likely to overstate if the company was trying to mislead potential external investors or creditors?
A company would be most likely to overstate its revenue or sales figures to present a more favorable financial position and attract potential investors or creditors. This may involve recognizing revenue prematurely or inflating sales projections. Additionally, the company might understate liabilities or expenses to create an illusion of higher profitability and financial health, thereby misleading external stakeholders about its true financial stability.
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What are the internal and external users of financial statements?
External Users: 1 - Potential Investors 2 - Banks 3 - Financial Institutions 4 - Governament 5 - Creditors 6 - Suppliers Internal Users 1 - Employees 2 - Management 3 - Share holders etc
Why do external user use accounting information?
External users utilize accounting information to make informed decisions regarding their interest in a business. Investors assess a company's financial health and performance to determine potential profitability and risks associated with their investments. Creditors evaluate financial statements to decide on lending terms and to gauge the risk of default. Additionally, regulatory agencies and analysts use this information for compliance and to provide insights into market trends.
Which one of the following is not an external user of accounting information a. gulatory agencies. b. Customers. c. Investors. d. All of these are external users?
d. All of the above
Why do the internal and external user need accounting information?
Internal users, such as management and employees, need accounting information to make informed decisions regarding budgeting, performance evaluation, and strategic planning. External users, including investors, creditors, and regulatory agencies, require this information to assess the financial health and stability of the organization, make investment decisions, and ensure compliance with laws and regulations. Overall, accounting information serves as a critical tool for both internal and external stakeholders to understand and evaluate the financial position and performance of a business.
Why does accounting exist?
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
Why is it important for a public company that an external audit is performed on an annual basis?
So that the public company's investors, creditors, interested regulatory entities and potential investors, creditors and regulatory entities have independent unbiased confirmation of the finances of the company on a regular basis.
What are the internal and external users of financial statements?
External Users: 1 - Potential Investors 2 - Banks 3 - Financial Institutions 4 - Governament 5 - Creditors 6 - Suppliers Internal Users 1 - Employees 2 - Management 3 - Share holders etc
What is external reporting?
stockholders creditors suppliers and employees
Why do external user use accounting information?
External users utilize accounting information to make informed decisions regarding their interest in a business. Investors assess a company's financial health and performance to determine potential profitability and risks associated with their investments. Creditors evaluate financial statements to decide on lending terms and to gauge the risk of default. Additionally, regulatory agencies and analysts use this information for compliance and to provide insights into market trends.
What is external financial reporting?
stockholders creditors suppliers and employees
Are shareholders internal or external users of accounting information?
Internal users would be managers so that they can make decisions about how to manage and also see how effectively they have managed. External users would be potential investors, the Government, lenders, the public, unions...
Who is not an internal user of financial statement?
External users of financial statements include investors, creditors, regulators, and analysts. Unlike internal users such as management and employees, external users rely on financial statements to assess an organization's performance and financial health from an outside perspective. They utilize this information for decision-making regarding investments, lending, and compliance with regulations.
Who borrowed the Philippine debt?
The Philippine debt has been borrowed by various creditors over the years, including foreign governments, international financial institutions like the World Bank and Asian Development Bank, and private investors. The country's debt profile includes both domestic and external debt.
Which one of the following is not an external user of accounting information a. gulatory agencies. b. Customers. c. Investors. d. All of these are external users?
d. All of the above
Who are the users of a business plan?
Users of a business plan typically include entrepreneurs and business owners seeking to outline their business strategy, attract investors, and secure financing. Additionally, management teams may use it to guide operations and set objectives, while stakeholders like employees, partners, and advisors reference it for alignment on goals and performance expectations. External parties, such as banks and potential investors, also utilize the plan to assess the viability and potential of the business.
Who are the internal and external stakeholders for Aeropostale?
Internal stakeholders of Aeropostale include employees, management, and shareholders who have a vested interest in the company's operations and profitability. External stakeholders encompass customers, suppliers, investors, creditors, and the local community, all of whom are affected by Aeropostale's business practices and performance. Each group plays a crucial role in the company's success and sustainability. Their interests often intersect, influencing Aeropostale's strategic decisions and overall direction.
Why do the internal and external user need accounting information?
Internal users, such as management and employees, need accounting information to make informed decisions regarding budgeting, performance evaluation, and strategic planning. External users, including investors, creditors, and regulatory agencies, require this information to assess the financial health and stability of the organization, make investment decisions, and ensure compliance with laws and regulations. Overall, accounting information serves as a critical tool for both internal and external stakeholders to understand and evaluate the financial position and performance of a business.
