Chapter 1, Problem 31E

Exercise 1-31 Decisions Based on Accounting Information

Decision-makers use accounting information in a wide variety Of decisions including the following:

1. Deciding whether or not to lend money to a business

2. Deciding whether or not an individual has paid enough in taxes

3. Deciding whether or not to place merchandise on sale in order to reduce inventory

4. Deciding whether Or not to invest in a business

5. Deciding whether or not to demand additional benefits for employees

Required:

Match each decision with one of the following decision-makers who is primarily responsible for the decision: a government (G), an investor (I), a labor union (U), business managers (M), or a bank (B).