Which of the Following Are Likely to Be Users of Financial

question 56

Multiple Choice

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

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

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Definitions:

Expected Interest Rate

The interest rate investors anticipate receiving on an investment over a specific period, taking into account the risk of the investment.

Default Risk Premiums

Additional returns that investors demand for taking the risk that the bond issuer might default on its payment obligations.

Treasury Bond

A long-term, fixed-interest U.S. government debt security with a maturity of more than ten years.

Yield

Yield is the income return on an investment, expressed as a percentage of the investment’s cost or current market value, commonly used for bonds and dividend-paying stocks.