Which of the Following External Users Would Require Financial Statement

question 8

Multiple Choice

Which of the following external users would require financial statement information,specifically information concerning ability to meet financial obligations?

• A) Governmental units
• B) Lenders
• C) Vendors
• D) Employees
• E) Customers

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Definitions:

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides health insurance for Americans aged 65 and older, and for some younger people with disability.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the unemployment account of the federal government.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, providing financial assistance to unemployed workers.

Medicare Taxes

These are taxes collected to fund the Medicare program, which provides healthcare benefits for eligible seniors and disabled individuals.