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Unformatted text preview: alternatives, estimations of income from new sales operations, and predict of cash requirements for the following year. In addition, a recap of financial information is on hand in the form of financial statements. There are a number of categories of external users of accounting knowledge. Investors , which also known as owners use accounting knowledge to create choices to buy, hold, or sell stock. Creditors , which include suppliers and bankers, use accounting knowledge to examine the threats of granting credit or loaning money. Several questions that might be asked by investors and creditors about a business, which include is the business making adequate income, how does the business measure up in size and prosperity with competitors, and will the business be capable to recompense its debts as they come due. The knowledge requirements and questions of other external users differ significantly....
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This note was uploaded on 12/12/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Winter '10 term at University of Phoenix.
- Winter '10