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Solutions Manual For Accounting Principles 6th Canadian Edition 6e Weygandt Kieso Kimmel Trenholm Kinnear Barlow

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Solutions Manual For Accounting Principles 6th Canadian Edition 6e Weygandt Kieso Kimmel Trenholm Kinnear Barlow-1. Yes. Accounting is the financial information system that provides useful financial ... information to every person who owns and uses economic resources or otherwise engages in economic activity. 2. Understanding the basics of accounting is helpful for everyone. Studying accounting allows you to learn how the world of business actually works. Learning how to read and interpret financial information will provide you with a valuable set of skills. 3. Internal users are those who plan, organize, and run businesses and include managers, supervisors, directors, and company officers. External users work for other organizations but have reasons to be interested in the company’s financial position and performance, and include current or potential investors (owners), and creditors. Internal users may want answers to several types of questions. For example, the finance department wants to know if there is enough cash to pay the bills. The marketing department wants to know what price the business should use in selling its products to maximize profits. The human resources department wants to know how many people the business can afford to hire. The production department wants to know which product lines make the business the most profit. External users may want answer to several types of questions. For example, investors want to know if the company is earning enough to give them a return on their investment. Creditors want to know if the company is able to pay its debts as they come due. Labour unions want to know whether the owners can afford to pay increased wages and benefits. Customers are interested in whether a company will continue to honour its product warranties and support its product lines. Taxing authorities want to know whether the company respects the tax laws. Regulatory agencies want to know whether the company is respecting established rules. 4. The main objective of financial reporting is to provide useful information to investors and creditors (external users) to make decisions about a business. Users may be potential investors who need to decide if they wish to invest in the business or they may be creditors deciding if they wish to lend money to the business. These users want to know if the business is running successfully and can generate cash and earn a profit. [Show More]

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