The Following Is a List of Selected Users of Accounting

question 233

Short Answer

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
a. Suppliers
b. Lenders
c. Shareholders
d. Purchasing Managers
e. Regulators
____ 1. Know what, when, and how much to purchase.
____ 2. Judge the soundness of a customer before making sales on credit.
____ 3. Assess whether a company has paid all required taxes and complied with securities rules.
____ 4. Assess whether an organization is likely to repay its loans with interest.
____ 5. Decide whether to buy, hold, or sell a company's stock.

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Definitions:

Joint Cost

The costs incurred in the process of producing two or more products simultaneously, where such costs cannot be separately identified with individual products.

By-Products

Secondary products that are generated alongside the main product during the manufacturing process.

Net Realisable Value

The estimated selling price of goods minus the costs of their completion and sale.

Physical Units Method

A costing method used to allocate costs in processes where goods are indistinguishable and it counts units as they are produced.