a.

Costumers
b. The public
c. Government and their agencies
d. Employees

6. These users are interested in information that enables them to assess whether their
loans, the related interest thereon, and the other amounts owing them will be paid when
due.

a. Lenders and other creditors

b. Borrowers
c. Trade creditors
d. Owners

7. These users are interested in information about the continuance of an entity,

especially when they have a long-term involvement with or are dependent on the entity.

a. Customers
b. Employees
c. Trade unions
d. Suppliers

8. These users are interested in information in order to regulate the activities of an

entity, determine taxation policies and provide the basis for national statistics.

a. Government and their agencies

b. Major organization of users
C. Bureau of Internal Revenue
d. Department of Finance

9. These users need information on trends and recent developments where an entity
makes a substantial contribution to the local economy providing employment and using
local suppliers.

a. The public
b. Government and their agencies
c. Finance entities
d. Private entities

Problem 2-5 Multiple choice

1. What is the objective of financial reporting?

a. To provide financial information about the financial position and financial performance
of an entity.
b. To provide financial information about an entity and is useful to existing and potential
investors, lenders and others creditors in making decisions about providing