Unit 1 Assignment #2 (ACC305 Analysis of Financial Statement)

  

Unit 1 Assignment #2 (ACC305 Analysis of Financial Statements)

P1-1 Demand for accounting information (LO 1-1)

Required:

1. Explain why each of the following groups might want financial accounting information. What type of financial information would each group find most useful?

a. The company’s existing shareholders 

b. Prospective investors 

c. Company managers.

d. Current employees.

e. Commercial lenders who have loaned money to the company.

f. Current suppliers.

g. Debt-rating agencies such as Moody’s or Standard and Poor’s.

h. Regulatory agencies such as the Federal Trade Commission.

2. Identify at least one other group that might want financial accounting information about the

company, and describe how it would use the information.

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