Which of the Following Uses Accounting Information to Determine Whether

question 33

Multiple Choice

Which of the following uses accounting information to determine whether a company can pay its obligations?

• A)shareholders
• B)marketing managers
• C)creditors
• D)Canada Revenue Agency

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Definitions:

Budgeting

The process of creating a plan to spend your money by estimating the revenue and expenses for a future period, used as a financial guide.

Actual Results

The real, measured outcomes of financial or operational activities, used to compare against budgeted or forecasted figures for analysis.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive officers, legal and secretarial expenses.

Client-visits

The instances when a client or customer visits a business premise for the purpose of obtaining services or conducting business.