Shareholders and Creditors Are the Only People Who Need Accounting

question 66

True/False

Shareholders and creditors are the only people who need accounting information.

---

Definitions:

Cash Inflow

The total amount of money being transferred into a business, often from operations, investments, or financing.

Issue Common Shares

The process by which a corporation sells new shares to investors to raise capital.

Ceases Operations

The process when a business stops its principal business activities and ends its operations.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, holding an ownership stake.