ACCTweek1 - consumers. 2.Budget Officers-The officers use...

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(a) Identify at least three external users of accounting information and indicate two questions they might seek to answer through their use of accounting information. 1.Lenders -Is an organization possible to repay its loans with interest? -Does an organization have financial issue in the past or not? 2. Share Holders -How do the owners decide whether to buy, hold, and sell stocks? -How does the owners elect a board of directors to oversee their interests in the organization? 3.Governments -Is the government receipt correctly monitored and evaluated by the officials? -Is the organization complying with the expenditure authorities that are granted by the legislature and demonstrate such compliance? (b)Identify at least three internal users of accounting information and describe how each might use accounting information in their jobs. 1.Managers -Managers need reports about accurate and efficient delivery of products and services or sales and costs to target
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Unformatted text preview: consumers. 2.Budget Officers-The officers use reports about how the organization distributes its budget to various branches in the organization or figure out the present financial condition. 3.Sales stuffs-The stuffs use accounting information to know which items are popular or not, and determine the price and the place of those items. EX1-1 EX1-13 Income Statement Revenues Consulting fees earned $14,000 Total Revenue $1,4000 Expenses Rent Expense $2,520 Salaries Expense $5,600 Telephone Expense $760 Miscellaneous Expense $580 Total Expense $9,460 Net Income $4,540 Ex1-15 Balance Sheet Assets Liabilities Cash $11,500 Account Payable $25,037 Supplies $24,437 Total Liabilities $25,037 Land $46,000 Equipment $18,000 Equity Account Keisha King Capital $86,900 receivable $12,000 (84,360+4,540-2,000) Total Asset $111,937 Total liabilities and equity $111,937...
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ACCTweek1 - consumers. 2.Budget Officers-The officers use...

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