Provided Below Is a List of Important Users of Accounting

question 96

Multiple Choice

Provided below is a list of important users of accounting information.Below the list are descriptions of a major need of each of the various users.Fill in the blank with the one user group that is most likely to have the need described to the right of the blank.Some user groups may be used more than once or not at all.
-The company's profitability since the last work force contract was signed.

• A)Stockholder
• B)Company management
• C)Supplier
• D)Banker
• E)Internal Revenue Service
• F)Securities and Exchange Commission
• G)Labor union

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Definitions:

Account Balances

The amount of money in a financial repository, such as a bank account, at any given time.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends, to be reinvested in the business or used to pay off debt.

Contractual Loan Restrictions

Clauses in a loan agreement that limit the borrower's actions in certain ways to reduce the lender's risk.

Preferred Dividends

Payments made to preferred shareholders before any dividends are distributed to common shareholders, often at a fixed rate and with priority over common dividends.