Internal Users of Financial Information

question 129

Multiple Choice

Internal users of financial information:

• A) Are not directly involved in operating a company.
• B) Are those individuals involved in managing and operating the company.
• C) Include shareholders and lenders.
• D) Include directors and customers.
• E) Include suppliers, regulators, and the press.

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Definitions:

Cash Dividends

Cash distributions from a company's earnings to its shareholders.

Balance Sheet

An account that outlines the financial position of a company, detailing its assets, liabilities, and owners' equity at a given point in time.

Income Statement

A financial statement that shows a company's revenue and expenses, and the resulting profit or loss, over a specific period.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to arrive at operating cash flow.