List five possible users of a set of financial statements and state what each would be interested in learning from its review
Possible users and their reasons for interest could be:
• Existing creditors who would be concerned about being repaid on time
• Possible creditors who are considering extending credit or making loans to the company and being repaid in a timely fashion
• Current stockholders who want to follow and manage their investment
• Individuals or corporations considering an investment in the company
• College students who would use the statements to learn about financial statement analysis
• Managers of the company who would use the statements to evaluate their areas of operations and make decisions to improve them
• Government bodies such as the SEC, which would review the financial statements to ensure conformity to laws that protect the general public
• Labor unions involved with the company, which would review the statements to evaluate present profitability as part of preparing for contract negotiations
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What are some factors that a company must consider when deciding to raise or lower sales prices on products?
Which of the following is an assumption underlying standard CVP analysis?
A. Fixed expenses will change as volume increases. B. In multiproduct companies, the sales mix is constant. C. The price of a product or service is expected to change as volume changes. D. In manufacturing companies, inventories always change.
List the five elements of a firm's macroenvironment, and illustrate how each element affects the firm.
What will be an ideal response?