Question
Question 6 Which of the following groups are considered users of financial information: Managers and employees Shareholders and lenders Tax authorities and suppliers All of the options are correct 3 pts
Answer
4.6
(212 Votes)
Jacob
Master · Tutor for 5 years
Answer
All of the options are correct
Explanation
## Step 1: Understanding the Groups Who Use Financial InformationFinancial information is crucial for a wide range of interested parties who use this insight for scrutinizing an organization's fiscal health and making critical decisions. ## Step 2: Defining the Groups Listed in the Options(a) Managers and employees use financial details for performance analysis; managers for strategic planning and employees for projecting job stability and bonuses.(b) Shareholders and lenders rely upon it as shareholders use the data to evaluate the firm's performance, while lenders gauge the business's ability to repay loans.(c) Tax authorities and suppliers utilize financial information in their jurisdiction as too. For tax authorities, this disclosure helps verify the amount owed by the organisation in taxes, while suppliers discern a customer business's creditworthiness with this disclosure.(d) 'All the options are correct'- indicates that managers, employees, shareholders, lenders, tax authorities, and suppliers are all users of financial information. ## Step 3: Analyzing the Options and Reflecting on the DetailsFrom the users listed, it is clear that financial data prepared by an organization is useful to various entities for varied reasons. Therefore, all of the given categories in different options represent users of financial information.