Provided Is a List of Important Users of Accounting Information

question 14

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.)
-The ability of the company to pay its debts as they become due.

• 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:

Average Daily Sales

The average sales generated per day over a specific period, useful for analyzing business performance.

Average Collection Period

The average amount of time it takes for a company to receive payments owed by its customers, indicating the efficiency of the company's credit and collection policies.

Cost Of Default

The expenses and financial losses incurred when a borrower fails to make a loan payment on time.

Cost Of Discounts

The reduction in revenue a company faces when it offers products or services at a reduced price.