Question 1

Stockholders would most likely use accounting information provided by their firm to

obtain information needed to fill out their individual tax returns

make capital budgeting decisions.

gauge whether the firm is generating a satisfactory return on their investment.

determine whether the firm can repay them for their stock.

Question 2

_____ perform or assist in a wide variety of tasks for the firms in which they work. These tasks include budgeting, cost and asset management, and the preparation of reports for the firm’s stakeholders.

Internal auditors

Public accountants

Management accountants

Government accountants

Question 3

Tiny Timber Tree Farms applied to United Bank for a business loan. Which financial statements would the loan officer of the bank be most likely to request?

journals, ledgers, and trial balances

balance sheets, income statements, and cash flow statements

total debits and total credits

the prospectus, statement of retained earnings, and total liability statement