
(a)
Accounting Data:
Accounting data refers to all the information and data that are available in journals, ledgers, and other reports that act as the basis of financial statements. Accounting data may be available on paper or in computer readable form. All businesses, big or small have a large amount of accounting data.
Internal users of accounting data:
Internal users of accounting data refer to the people within an organization who use accounting data for various managerial purposes. The internal users of accounting data are usually the managers, employees, and owners of an organization who use accounting data in the various processes.
External users of accounting data:
External users of accounting data refer to the people outside an organization who want to evaluate the financial performance of the organization. The most common external users of accounting data are usually the creditors, debtors, investors, and government agencies. They require information in order to make various decisions like whether to buy, hold, or sell ownership shares of a company or to evaluate the risks of granting credit or lending money.
To identify: Whether the users of accounting information are internal or external.
(b)
To identify: Whether the given questions are asked by internal users or external users.

Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
FINANCIAL ACCOUNTING W/WILEY+ >IP<
- The journal entry to record the purchase of office supplies on account would include:A. Debit Supplies, Credit CashB. Debit Supplies, Credit Accounts PayableC. Debit Cash, Credit SuppliesD. Debit Accounts Payable, Credit Suppliesarrow_forward7. Which of the following is an adjusting entry?A. Payment of salariesB. Depreciation expenseC. Purchase of suppliesD. Payment of rent in advancearrow_forward5. What is the normal balance of the Dividends account?A. DebitB. CreditC. Zero balanceD. Depends on the type of dividendarrow_forward
- 6. Which of the following transactions decreases stockholders' equity?A. Issuing sharesB. Paying dividendsC. Earning net incomeD. Receiving customer paymentsarrow_forward8. Which of the following is not a current asset?A. Accounts ReceivableB. Prepaid RentC. BuildingD. Inventoryarrow_forwardgeneral accountingarrow_forward
- Please provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardAccounting?arrow_forward9. If a company fails to adjust for accrued interest expense, what is the effect on the financial statements?A. Assets overstatedB. Liabilities understatedC. Revenues understatedD. Equity overstated need helllparrow_forward
- 9. If a company fails to adjust for accrued interest expense, what is the effect on the financial statements?A. Assets overstatedB. Liabilities understatedC. Revenues understatedD. Equity overstatedarrow_forwardDont use chatgpt The journal entry to record the purchase of office supplies on account would include:A. Debit Supplies, Credit CashB. Debit Supplies, Credit Accounts PayableC. Debit Cash, Credit SuppliesD. Debit Accounts Payable, Credit Suppliesarrow_forwardCan you help me solve this general accounting problem using the correct accounting process?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





