Chapter 1, Problem 4Q

(a)

To determine

Financial Accounting Information:

Financial accounting information refer to the information related to the financial transactions and events of a business that are recorded and summarized in reports, and further used by groups of people who are interested in the organization. The reports that are considered as the major sources of financial accounting information include the balance sheet and the income statement.

Financial accounting information is used by different users in different ways for different purposes. The users of financial accounting information include creditors, tax authorities, investors, customers, and regulatory authorities.

To ascertain: The use of financial accounting information to investors.

(b)

To determine

To ascertain: The use of financial accounting information to creditors.