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Unformatted text preview: Proprietorship g. Tampa Biz pays its own income taxes and has two owners. Corporation Exercise 1-4 Identifying accounting users and uses Much of accounting is directed at servicing the information needs of those users that are external to an organization. Identify at least three external users of accounting information and indicate two questions they might seek to answer through their use of accounting information. Lenders will want to know if a company can repay a loan with interest and if the company seems stable enough to stay in business through the life of the loan. Labor unions would want to know how much to ask for in yearly raises for employees and if the company can afford health, dental, and other benefits such as a retirement plan. Customers would want to know if the company they purchase product from will be able to stay in business and if they have the capital to backup their product with warranties and guarantees....
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- Spring '10