Internal Users of Financial Information

question 129

Multiple Choice

Internal users of financial information:

• A) Are not directly involved in operating a company.
• B) Are those individuals involved in managing and operating the company.
• C) Include shareholders and lenders.
• D) Include directors and customers.
• E) Include suppliers, regulators, and the press.

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Definitions:

Alternative Investments

Assets that do not fall into the conventional investment categories such as stocks, bonds, and cash, examples include real estate, commodities, and hedge funds.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Differential Income

The difference in income between two alternatives, used in decision-making processes to determine the best option.

Alternative Use

Refers to the potential other uses or applications of an asset or resource outside its current employment.