CH 6
CH 6
CH 6
4. The users require information on risk and return provided by their investment.
a. Investors
b. Employees
c. Lenders
d. Customers
5. These users are interested in information about the profitability and stability of the entity in
order to assess the ability of entity to provide remuneration, retirement benefits and
employment opportunities.
a. Customers
b. The public
c. Governments and their agencies
d. Employees
6. These users are interested in information that enables them to assess whether their loans,
the related interest thereon, and other amounts owing to them will be paid when due.
a. Lenders and other creditors
b. Borrowers
c. Trade creditors
d. Owners
7. These users are interested in information about the continuance of an entity, especially when
they have a long term involvement with or are dependent on the entity.
a. Customers
b. Employees
c. Trade unions
d. Suppliers
8. These users are interested in information in order to regulate the activities of an entity,
determine taxation policies and provide a basis for national statistics.
a. Governments and their agencies
b. Major organization of users
c. Bureau of Internal Revenue
d. Department of Finance
9. These users need information on trends and recent developments where an entity makes a a
substantial contribution to the local economy providing employment and using local
suppliers.
a. The public
b. Governments and their agencies
c. Finance entities
d. Private entities
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