Which Group of Users Is Most Likely to Require Accounting

question 62

Multiple Choice

Which group of users is most likely to require accounting information to assess the ability of a business to pay interest and repay a loan?

• A)employees.
• B)customers.
• C)creditors.
• D)taxation department.

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Definitions:

Operations Year

The 12-month period used by businesses to measure financial and operational performance, often aligning with the fiscal year but not necessarily the calendar year.

Defined Contribution Plan

A pension plan in which the contributions into the plan are defined but the employee’s pension may vary depending on investment performance.

Annual Pension Benefit

The amount of money an individual receives from a retirement plan each year after retirement.

Installment Note

A debt that requires the borrower to make equal periodic payments to the lender for the term of the note.