a. auditors.
b. investors.
c. managers.
d. creditors.
Ans: C, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FC: Decision Modeling, AICPA PC: Project Management, IMA: Business Economics
65. Which of the following external groups uses accounting information to determine whether the company can pay its obligations?
a. Investors in common stock
b. Marketing managers
c. Creditors
d. Chief Financial Officer
Ans: C, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
66. Which of the following groups uses accounting information to determine whether the company’s net income will result in a stock price increase?
a. Investors in common stock
b. Marketing managers
c. Creditors
d. Chief Financial Officer
Ans: A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
67. Which of the following groups uses accounting information to determine whether an advertising proposal will be cost effective?
a. Investors in common stock
b. Marketing managers
c. Creditors
d. Chief Financial Officer
Ans: B, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Project Management, IMA: Business Economics
68. Which of the following would not be considered an external user of accounting data for the Julian Company?
a. Internal Revenue Service agent
b. Management
c. Creditors
d. Customers
Ans: B, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
69. Which of the following would not be considered an internal user of accounting data for a company?
a. The president of a company
b. The controller of a company
c. Creditor of a company
d. Salesperson of a company
Ans: C, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
70. Which of the following is a primary user of accounting information with a direct financial interest in the business?
a. Taxing authority
b. Creditor
c. Regulatory agency
d. Labor union
Ans: B, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
71. Which of the following is a user of accounting information with an indirect financial interest in a business?
a. A financial adviser
b. Management
c. Investor
d. Creditor
Ans: A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
72. Which type of corporate information is readily available to investors?
a. Financial comparison of operating alternatives
b. Marketing strategies for a product that will be introduced in eighteen months
c. Forecasts of cash needs for the upcoming year
d. Amount of net income retained in the business
Ans: D, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
73. Which of the following statements concerning users of accounting information is incorrect?
a. Management is considered an internal user.
b. Present creditors are considered external users.
c. Regulatory authorities are considered internal users.
d. Taxing authorities are considered external users.
Ans: C, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting