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CHAPTER 1-Framework Accounting
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24. They are interested in information that enables them to determine whether their loans, and theinterest attaching to them, will be paid when due.a. investorsb. lendersc.suppliersd. public
25. They are interested in information that enables them to determine whether amounts owing to themwill be paid when due.They are likely to be interested in an entity over a shorter period than lendersunless they are dependent upon the continuation of the entity as a major customer.
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26. These users are interested in the allocation of resources and activities of enterprises, and thereforerequire information to regulate the activities of enterprises, determine taxation policies and as a basisfor national income and similar statistics.
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27. Which of the following statement users will use financial information to anticipate price changes, seekalternative sources of supply, and assess ability of enterprise to operate as a going concern?
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28. Which users need financial information to enable them to assess the ability of the enterprise toprovide remuneration and retirement benefits and employment opportunities?a. Employeesb.Government and its agenciesc.Customersd. Investors
21.These users are interested in information about thecontinuance of an entity, especially when they have along-term involvement with or are dependent on theentity.a.Customersb.Employeesc.Trade unionsd.Supplies
22.These users are interested in information in order toregulate the activities of an entity, determine taxationpolicies and provide a basis for national statistics.
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23.These users need information on trends and recentdevelopments where an entity makes a substantialcontribution to the local economy providingemployment and using local suppliers.
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24.The overall objective of financial reporting is toprovide information
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25.The primary focus of financial reporting has been onmeeting the needs of which of the following groups?a.Managementb.Existing and potential investors, lenders and othercreditorsc.National taxing authoritiesd.Independent CPAs
26.The primary objective of financial reporting is toprovide useful information to
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27.Which is an objective of financial reporting?
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FAR3MC: CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTINGPage2of3