Question

which of the following groups uses accounting information to determine whether the company's net income will...

which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase?
Chief financial officer
Investors in common stock
Creditors or marketing managers

Homework Answers

Answer #1

Answer:

Option B: Investors in common stock

Explanation:

Among the various groups, investors in common stock are known as the owners of the company.

They are the independent group of people who uses accounting information to determine whether the company's net income will result in a stock price increase.

Chief financial officer and creditors or marketing managers are company's internal people and accordingly, these are not the group of people who uses accounting information to determine an increase in stock prices.

Hence, it can be concluded that-

Option 'B' is correct and rest all are incorrect.

In case of any clarification or doubt, please feel free to comment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use the following information for Netflix Inc. to calculate the company's accounting net income for the...
Use the following information for Netflix Inc. to calculate the company's accounting net income for the year. Sales on credit $600,000 Sales (cash) $700,000 Administrative Expenses $100,000 Selling and marketing Expenses $800,000 Interest Expenses $160,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 Corporate Tax Rate 50%
All the following are ways in which accounting information is used by financial accounting users except...
All the following are ways in which accounting information is used by financial accounting users except to a.   buy, sell, hold equity and debt instruments. b.   decide whether to invest in the company. c.   evaluate borrowing capacity to determine the extent of a loan to grant. d.   plan and control company's operations.
The following information pertains to Tulsa Company's budgeted income statement for the month of June 2011:...
The following information pertains to Tulsa Company's budgeted income statement for the month of June 2011: Sales (1200 units @ $300) $360.000.00 Variable Cost $180,000.00 Contribution Margin $180,000.00 Fixed Costs $255,000.00 Net Loss $ (75,000.00) Requirements: a)     Determine the company breakeven point in both units and dollars. b)     The sales manager believes that a $27,000 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased...
For 2012, Wildhorse Manufacturing Company provided the following accounting information: Net operating income $78,000 Depreciation on...
For 2012, Wildhorse Manufacturing Company provided the following accounting information: Net operating income $78,000 Depreciation on equipment and building 10,000 Sale of land 27,500 Purchase of equipment 14,400 Retirement of long-term debt 36,000 Dividends paid 13,100 Purchase of long‐term investments 10,200 Which of the above are sources of funds? Net operating income YesNo Depreciation on equipment and building YesNo Sale of land YesNo Purchase of equipment YesNo Retirement of long-term debt YesNo Dividends paid YesNo Purchase of long‐term investments YesNo...
which of the following is likely to be a user information in a financial accounting system...
which of the following is likely to be a user information in a financial accounting system taxing authorities other businesses potential investors all of the above
1.Net income would increase as a result of which of the following adjustments: a Accruing an...
1.Net income would increase as a result of which of the following adjustments: a Accruing an expense b Adjusting a prepaid account       c Accruing a revenue d Recording depreciation 2 Which of the following is not an accounting event? a A firm purchased equipment on account.       b A firm issues stock for cash. c A firm received, but did not pay, a bill for advertising. d A customer places an order for goods.
A review of the accounting records of Camtasia Manufacturing indicated that the company incurred the following...
A review of the accounting records of Camtasia Manufacturing indicated that the company incurred the following costs during the month of May. Assume that the company's financial statements are prepared as per US GAAP. Salary of the company president $31,800 Salary of the vice president of manufacturing $16,000 Salary of the chief financial officer $18,600 Salary of the vice president of marketing $14,900 Salaries of middle managers in manufacturing function $205,000 Wages of production workers $945,000 Salaries of middle managers...
The following information is related to New Lane Company's fiscal year 2017.             Income Statement:               &n
The following information is related to New Lane Company's fiscal year 2017.             Income Statement:                         Net Income                             $300,000                         Depreciation Expense                30,000                         Loss on Sale of Plant Assets     10,000                         Interest Expense                             500             Balance Sheet - 12/31/17:                         Accounts Payable Increase         4,000                 Accounts Receivable Increase    5,000                         Plant Assets - Purchased         200,000                         Plant Assets – Proceeds from sale          100,000                                     Additional Information:                         Cash Balance - 12/31/2016:  $50,000 Common Stock exchanged for outstanding Long-Term Notes Payable of $150,000                         Dividends paid were $30,000 Use this information...
Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average...
Common Stockholders' Profitability Analysis A company reports the following: Net income $120,000 Preferred dividends 4,800 Average stockholders' equity 975,610 Average common stockholders' equity 587,755 Determine (a) the the return on stockholders’ equity and (b) the return on common stockholders’ equity. If required, round your percentages to one decimal place. a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity % Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $404,500...
If the Company ABC has the following financial information: Net Income (NI) = $2,000,000; Shares of...
If the Company ABC has the following financial information: Net Income (NI) = $2,000,000; Shares of outstanding = 1,000,000; current stock price (P0) = $32; Repurchase ratio = 20% of the total shares of outstanding; what would be the Company’s new stock price (New P0)?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT