Question

answer each question with an explnation of each answer please

6. Multiple Choice Question 73 Which of the following statements concerning users of accounting information is incorrect? b. a. Regulatory authorities are considered internal users. Taxing authorities are considered external users. Present creditors are considered external users. Management is considered an internal user c. d. Answer: 7. Multiple Choice Question 80 Issuing shares of stock in exchange for cash is an example of a(n) I investing activity operating activity financing activity delivering activity a. b. d. Answer: 8. Multiple Choice Question 91 Resources owned by a business are referred to as b. revenues assets stockholders' equity liabilities C d Answer:

Answer 1

Ans:

1) Option A) Regular authorities are considered internal users

Reason: Internal users are the people who are indirectly involved in the day to day working of the company or the management of company like shareholders, employee, board of directors. Regulary authorities will be considered as the external users.

2) Option C) Financing Activities

Reason: Issue of shares in exchange iof cash is a means of primary source of funding for the company for all of its operating activities and investing activities so it will classified under the cash flow as financing activity.

3) Option B) Assets

Reason: Asset are the resources of the company from which it can settle its liabilities . It includes fixed assets like land, plant and machinery as well as current assets such as Accounts Receivable , inventory. Settlement or use of all this items will lead inflow of capital to the business thus they are the resource owned by the company.