Provided Is a List of Important Users of Accounting Information

question 150

Multiple Choice

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.)
-Will I get a raise this year?

• A)Investors
• B)Management
• C)Supplier
• D)Banker
• E)Government
• F)Employees
• G)Labor Union
• H)Investors and Banker
• I)Supplier and Banker

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Definitions:

EPS

Earnings Per Share, a financial metric used to indicate the profitability of a company on a per-share basis.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financial Leverage

The use of borrowed funds with the goal to increase the potential return on investment.

Leveraged Firm

A company that uses debt along with equity to finance its assets, often resulting in higher potential returns but also higher risk.