Question

Match each of the following types of evaluation with one of the listed users of accounting information. (Note: There might be users who would be interested in more than one evaluation, but choose the user who would be most interested.)
A) Trying to determine whether the companys net income will result in a stock price increase
B) Trying to determine whether an advertising proposal will be cost-efficient
C) Trying to determine whether the company can pay its obligations
D) Trying to determine whether the company should employ debt or equality financing
E) Trying to determine whether the company complied with tax laws
A) Investors in common stock
B) Marketing managers
C) Creditors
D) Chief Financial Officer
E) Internal Revenue Service

Answer 1

Answer:

A) Trying to determine whether the company's net income will result in a stock price increase  - Investors in common stock

B) Trying to determine whether an advertising proposal will be cost-efficient  - Marketing managers

C) Trying to determine whether the company can pay its obligations  - Creditors

D) Trying to determine whether the company should employ debt or equality financing  - Chief Financial Officer

E) Trying to determine whether the company complied with tax laws - Internal Revenue Service