Which of the Following Are Likely to Be Users of Financial

question 15

Multiple Choice

Which of the following are likely to be users of financial accounting information?

• A)Taxing authorities
• B)Potential investors
• C)Creditors
• D)All of the above

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Definitions:

Sustainable Earnings

The portion of a company's profits considered to be repeatable, stable, and able to be maintained over the long term.

P/E Ratio

A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Present Value

The computed present value of a future monetary sum or cash flow sequence, utilizing an established rate of return.

Growth Opportunities

Potential scenarios or plans a business can embark on to increase profits, expand its operations, or enter new markets.