Internal Users of Accounting Information Quiz
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Questions and Answers

What do internal auditors do?

  • Determine whether loans and interest will be paid when due
  • Assess the ability of the enterprise to pay dividends
  • Protect and safeguard company resources against fraud or irregularities (correct)
  • Make decisions directly affecting the internal operations of the business

    • Who uses financial data to assess their compensation and employment opportunities?

  • Investors
  • Managers
  • Officers
  • Employees (correct)

    • What are officers interested in knowing about the company?

  • Protect and safeguard company resources against fraud or irregularities
  • Determine whether loans and interest will be paid when due
  • If the company is doing well in its operation to plan for possible expansion (correct)
  • Assess the ability of the enterprise to pay dividends

    • What do investors need information on?

    <p>Assess the ability of the enterprise to pay dividends</p> Signup and view all the answers

    What do lenders need information on?

    <p>Determine whether their loans and interest will be paid when due</p> Signup and view all the answers

    What do internal auditors primarily aim to protect and safeguard against?

    <p>Fraud or irregularities</p> Signup and view all the answers

    What do officers (company executives) seek to assess about the company?

    <p>Performance and potential expansion</p> Signup and view all the answers

    What is the primary interest of lenders in obtaining financial information?

    <p>Determining loan repayment ability</p> Signup and view all the answers

    What type of information are investors (providers of risk capital) primarily interested in?

    <p>Assessing the ability of the enterprise to pay dividends</p> Signup and view all the answers

    What is the primary purpose of employees using financial data?

    <p>Assessing compensation and employment opportunities</p> Signup and view all the answers

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