Which of the Following Is Considered an Internal User of Financial

question 137

Multiple Choice

Which of the following is considered an internal user of financial statements?

• A) a supplier considering selling to the company on credit
• B) a labour union representing employees of a company in labour negotiations
• C) a financial analyst preparing recommendations on companies in a certain industry
• D) a manager of a company who is supervising production workers

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Definitions:

Nominal Interest

The stated interest rate of a bond or loan, not accounting for inflation or the compounding of interest.

Compounded Quarterly

Interest calculation where the interest earned over a quarter is added to the principal for the calculation of future interest, effectively compounding every three months.

Effective Rate

The actual interest rate of an investment or loan, taking into account the compounding of interest.

Effective Rate

The real rate of interest earned or paid on an investment or loan in a specified period, considering compounding.