Which of These Are Identified by SAC2 as Major Categories

question 15

Multiple Choice

Which of these are identified by SAC2 as major categories of users of general-purpose financial reports?

• A) Resource providers
• B) Parties performing an oversight function
• C) Recipients of goods and services
• D) All of the above

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Debt-Equity Ratio

This ratio, a test of financial leverage, divides a company's liabilities by its stockholders' equity.

Total Debt

The sum of all short-term and long-term liabilities held by an entity.