Question

In: Accounting

Match the user with the most likely objective. User 1. Bank 2. Small private company 3. Not-for-profit organization

Match the user with the most likely objective.

User

1. Bank

2. Small private company

3. Not-for-profit organization

4. Management

5. Shareholders with agreement

Objective

A. Stewardship

B. Income tax deferral

C. Cash flow prediction

D. Contract compliance

E. Performance evaluation

Expert Solution

1. C - Bank –cash flow prediction to determine if their loan can be repaid.

2. B - Small private company - income tax deferral since they would want to minimize the amount of income taxes they need to pay

3. A – Not for profit organization – stewardship since they want to ensure assets are used for the correct purposes.

4. E – Management – performance evaluation to see how will company is performing

5. D – Shareholders with agreement – contract compliance to see if agreement is adhered to or not

Junaid answered 1 year ago

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