Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 91

Part A. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user
of accounting information.
_______ 1. What are reasonable payroll benefits and wages
_______ 2. Should we make a five-year loan to that business
_______ 3. What are the costs of our product's ingredients
_______ 4. Do income levels justify the current stock price
_______ 5. Should we spend additional money for redesign of our product
_______ 6. Which firm reports the highest sales and income
_______ 7. What are the costs of our service to customers
Part B. Identify the following users of accounting information as either an internal (I) or an external (E) user.
_______ 1. Research and development director
_______ 2. Human resources director
_______ 3. Nonexecutive employee
_______ 4. Shareholders
_______ 5. Distribution managers
_______ 6. Creditors
_______ 7. Production supervisors
_______ 8. Purchasing manager