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Financial accounting is utilized by ________ in order to make business decisions:

a. stockholders and creditors
b. production employees of the company
c. customers

User Nick Snick
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2 Answers

3 votes

Answer:

a. stockholders and creditors

Step-by-step explanation:

Got it right on the quiz

User Galloglass
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5 votes

Answer:

a. stockholders and creditors

Step-by-step explanation:

Financial accounting is utilized by stockholders and creditors in order to make business decisions.

The shareholder use financial accounting reports to determine if the company's performance is as expected and to decide if more money should be invested or funds invested be pulled out (through the sales or transfer of equity).

Creditors use financial accounting to analyze the ability of the company to pay up debts owed to them when due, also to know if to continue to extend credit facilities to the organization.

Production employees rarely use financial accounting, rather, they are more concerned with management accounting considering elements like production cost, material variances, sales budget etc.

Customers are predominantly concerned about the availability of products and the presence of close substitute.

Hence the right option is a.

User Solomon Botchway
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