the-accounting-information-of-a-privately-held-company-is-generally-available-to-all-of-the-followin

Question

The accounting information of a privately held company is generally available to all of the following
except for ________.
A. governmental agencies
B. investors
C. creditors and lenders
D. competitors

Puneet Prajapati · Accepted Answer

So let&#x27;s start over. Current solution. OK, so who can be the user Sofa? Comping information. Okay, use this off. Accounting information. So what is that sounding information? It is. It refers to the collection off data in respect of the transaction which an NDP enders with. Okay, with other entities. Okay, we will understand in much greater did a little pigs to little days. I wouldn&#x27;t divide it first of all investors, let&#x27;s suppose you are willing to start a business. But you are. You are very, very short off first. No work. You would know what will happen. You will go to your investors. You will go to the market to raise the capital from different types of investors that investors will demand the company information statement of financial position from you that please show that please show us your statement. Often insult financial position. Okay. Like national statement. Bellen She&#x27;d income income statement that how much profit do you have been running for the past five years? Okay, assess your profit and loss capacity. Okay? A sense your profit generating capacity was this your production capacity. So investors will likely to use your accounting information so that they can very well repair that. How much funds should be a located your business out of their portfolio? Also, there are government agencies which team are or we can say, which require your accounting information. Who says that whether you are working in social interest in part like you may be a very off you know, very well practiced laying down in, You know, companies act like corporate governance like, What does it tell it tells that the company should be Show yourself the purpose. Also, Psychlos, like begins example off conducting campaigns by the companies in their local regions off health checkups. Okay, health facility type and distributing medical insurance. A scholarship to ST James. Okay, so these types off. So these types off for millions. His check that whether the company is conducting social campaigns are working, incorporate gold in Syria or not. Okay. Also, the other employees off course employees will have a greater sense off accounting information by there, so because they&#x27;re working in the organization, they will have a very sense off. You know, every type of area in which the operation walking are willing to work like you begin sick clients. That revenue expenses. Okay, the locations off the company is the company Money National John Stash. Never. OK, employees. We left every type of accounting information allergic to the cup. No date is of one gang ticketea business competitors. So accounting information, however, accounting information off any type of company. But far but forgiven solution. It is a private company. Every company means it is not Mr Dunn Stock Exchange. So what is the difference between private and public company? A public company is is mandated to be listed on stock exchange, and every dive of information related to public company will be available to everyone. Everyone means even its company desserts. But we&#x27;re tough private companies concerned. Diamond Company is not listed on the stock exchange and its financial information. And every type of information is very, very less disclose toe every person. What? I mean that the information little private company will be available in less disclosing terms to anyone like it will be available to investors. It will be available to court media and sees it will be available to its employees. Also put business where the business computer comes. Okay. The information of private companies will not be available will not be easily available to its Tom Peters because such information is very, very comprehension. Okay, It&#x27;s not like that. Then it is a private come that anyone working in a private company steals that out information and passes business computer. So that is a very rare kiss. And we&#x27;re talking in general terms, less specific. I guess so. The available off accounting information off a private company will not be available for business. Okay, so whatever pushiness Oster&#x27;s and we have derived our solution, the correct choice. Four problem? No, is be okay. Link computers. The founding information allergic to private companies, will not be available to its competitors operating in the same industry. Okay, so that&#x27;s all our solution. You can write this example in your notebook so that you get a better sense or as villains. Clarity off the caution has been a solution. We have just arrived. All shake number two. Okay, that&#x27;s all part of a solution. Thank you.

Puneet Prajapati · Answer

Okay, so like this. So let&#x27;s understand the financial statement users. Okay, so there are two tapes. They proved himself an interesting rich users. So the banks on interest rate mentions which we can categorizing accident. So I&#x27;m going to write excellent users, right with that a thing because they are outside of the entities so that it will be more gator, do you that? Yeah. Upstaters outside it for an organization. So what? Type off. What? Papal abuses. We have instant uses skeptically. Let&#x27;s see that. Okay, Most of all investors, Okay, like equally share investors differentiating misters and that and many more. Okay, banks okay. Of legs like that to suppose if companies listed on the stock exchange so the public or we can say more specifically than the white category of investors will demand higher interest rate went from the entity. Okay. And that is up. Gourmet vacancy. So these are the These are the users of these. Other was defined that external use category, which are outsiders or the organization. Would you be mine definition state? Maine&#x27;s okay from the entity so that they connect upon them based on the relevant requirement. Okay. Internal users. What what they comprise off employees. Okay. Oh, not oh, we can say managers. So the so employs owner managers in all 30 mine financial statement of you claims from the entity to assess that where the company is heading to assess that medical beings heading on the on it straight. All we can see onto in a very, very business terminology that hoke in that How much the companies making a profit in dreary girls. So these are the categories we have off users are interest rates. No Asperger given, no problem. The correct what? It sees the external users of financial accounting from issue, including all of the foreign. Except so the correct choice for the problem. Yes. What employs? Okay, Because employees that because implies our Internet years off one inches d It&#x27;s OK, that is We have understood, You know, that letters never being issues they it is they didn&#x27;t use of captivity. So that is right. The correct choice would be a problem, missy. Okay. Thank you.

Puneet Prajapati · Answer

Okay, so that&#x27;s understand the category of persons who will require in managing. First of all, you will understand that. What is the manager? Okay, maybe you get it in violation. It refers to the which is which is all significant relevance. Four. Business unit, Manager four Decision. It is. Okay, So I have written down the actual definition. That is the manager dumping commission. No. Next understanding. What example? Way have business. Unit one business. You know, business unit. Oh, and the accent company. So, Tim, Golden easa money. Big business like it&#x27;s like it&#x27;s involved in my support Textile can because Okay, medical on. So what happens? They all have this separate accounting division. Okay, Separate accounting division, which will record the financial projections off this religion. This division, this division. So accounting division. Who? One. I think the vision. So what will? What will happen now? Such regions will create managerial accounting information that will be off very, very relevance. Do these do the business unit manager, each of the business unit manager operating business, Unit one. And like I spoke too. Okay, we will decide on the decision. Like how? How the company financials part of a farming based on the decisions we have taken so far. Okay, so this will amend the Theo prospective decisions for the company as a whole. However, that decision will be very, very specific. Who? Each of the business unit, based on the information developed by the accounting accounting division off each of the business. So the correct choice for problem that four problems for is problem for is for problem for his d. Okay, so that&#x27;s all over the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s start. What is the current situation? Off given problem. So let&#x27;s suppose we have ABC. You&#x27;re busy. Who needs him? Lester and services okay on. And it is the custom it on sport places like whenever the restaurant. This is daughter busy customer at this point. No, let&#x27;s see, I suppose if, uh, there are 100 that&#x27;s supposed if financial conditions has both 100 100 hundreds of bills will be raised in a given day. So they would be a financial transaction given by their soup because it&#x27;s very involved in fluid outflow of demon during didn&#x27;t act it so they would be 100 of travel agents. In the given thing, it&#x27;s it&#x27;s the company builds the customer unlevel of business. I don&#x27;t buy that such fun. Inception. Election will be needed to really hard it because a lesson until it will be those are pretty hard. It they will be. No, there would be no usage of the, you know, accounting division within the company. So you get now data. That&#x27;s how the business is growing out. The business is doing. We need to Ricardo standard Chanos for over there. Ve vill post those transactions into letters, how we reposed how to be posed and will be boast that not to be closed. So these Johnsville these makers, we will disperse stated on the bombs problems Where doesn&#x27;t know this will be, uh ah, high level detail like there are many off the production which news to work either Debit balance record button. So for every account day, their needs they need to be Oh, let&#x27;s see that live in number of predictions which would show that never better order credit balance Like it&#x27;s a high level detail. It&#x27;s a high level. Which mutual show the all the intelligence related to one party Nobody would then every look posting who get this summit iced point Who get the picture very, very clear them to be at this Somebody off the off The later so we&#x27;re do repost the post with the letters. After the posting, we get that somebody Okay, how do we get decently through the trial balance? Okay. Ordered by that What we get bigger, different distinctness and financial statements is itself is a very summarized forms like someone I think 1000 begins of billions of transactions do single variable So in the neck. Children, Kinsey, Financial accounting information provide right. Many off the person&#x27;s like employees or nursing. Lester&#x27;s got many agencies, legal authorities, someone based, but somebody&#x27;s for into information so that big in a strict work. So then they get a strict what type of information we were living through them and want to act upon them and how to look upon them. Okay. Okay. So the correct choice given nothing. I need to clarify that you can draw this diagram and your notebook so that you can get out. No clear picture after the before the exams. Okay, So correct choice for the given problem. This be like it summarizes the information. What does? Nothing. So Okay, that&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand our current solution. Okay, So the question has asked us that out of the falling options, which entity is able to raise the capital from the stock market? They&#x27;re dome the dome, which has Kocian used a portion has used sell these stalk on a stock exchange. Okay, so so do not confuse with this with this. You know, peace off statement from the whole portion even understand it very, very clearly. Okay, Through an example, because it&#x27;s amazing it Lord began it. So let&#x27;s suppose extent company. Okay, so then, Mr A, who is willing to start the business off garments? Okay, He has very good expertise. And, you know, the knowledge of garments are selling the garments, So he&#x27;s like, you start the business and he named this company to be X and got me. Now what happens? Mr. E is also short off us. No, because short offers what Mr A things that he will race shares, even race. He will raise deforms strong stock market by issue shares borders years. How how? The issuance of shares work on the stock exchange. What type off limits eligibility. We&#x27;ve been largo and put mustard in. But just to understand the meaning, I have given you a small little example who understand that whenever a person or any type of entity, legal entity or any time of complete will we&#x27;ll have. Funds will have ineligible firms are weak and insufficient funds to start the business to find the propose projects. Okay, so what if we do it will go to stop market or we can say its stock exchange. But as of now, I have specified stock market because stop. There are many, many segments in the stock market to raise the capital. OK, so let&#x27;s I started. Otherwise they will be who much confusion been been Julie beautifies ing it have been ok, so the company or any dive off entity if they will have insufficient funds, they will go to stock exchange. Who who raise difference by issuing shares shares a more They&#x27;re nothing, but she has denoted the ownership in the company like these years will be note that whoever who is willing the shares in his hands share certificate basically we&#x27;ll have are proportionate type off ownership in the extent company. Okay, so only and only if Mr A, please write this example and the corresponding statement I am writing on 30. If Mr A will have established a little limited company, then only he will be even though sell these stocks. Oh, cheers. So shares and stocks can be used interchangeably. OK, Do not confuse with the stocks or shares. Okay, said the stalker shares on the stopping since Okay, not the x clear. So from this from this three lines of statement, we can drive over solution that if Mr A has Bean able who are will be able to establish a public limited company, then only and only he will be able to sell the stocks are shares on the stock exchange Begin Also understand that from this definition that only public limited company will be able to raise difference through stock markets by additional shares. No, let&#x27;s move. You ever made solution? No. What happened? No. The question is, as is out of the options we live in which type of entity will be able to issue shares to raise defense from the stock market. Or we can say which of the following entity will be able to sell their stock on the stock exchange such as New York Stock Exchange. OK, now the correct choice for a problem is which one? Hey, okay, by their. So because only public limited companies will be able to sell their stock or stock exchange Okay, for various reasons, basically fundraising. That&#x27;s all forever. That in solution, you can write all the forces in your notebook before, so that so that you can, you know, get a better revision before your exams. Okay. Thank you.

Puneet Prajapati · Answer

book. It&#x27;s OVI are going to understand the concept of stock market today. Ordered by that. Do you understand? They regulate Lee expects off the same. Okay. Yeah, the first to the market in vintage by us foreign sailors by busy big by. Okay, sell the secure peace. A deep, best possible place. Okay, Gessel, in a general sense, everyone is familiar with the stock market, which is basically a main platform. Who pays fires. Okay. For many types of business ventures, that supposed date is there is a person who is William, who is willing to start his business. But this now short of place. So they issued Eagle. You should put the stock market who raised difference by showing different types off financial instruments. But who gets the stock market? There are only shares which can be issued by the company. Who is who is having short of funds. Okay. No. What is the stock market? It refers to the market. Okay. In which buyers and sellers by physically who by and sell the securities? What type of securities unleash years in stock market? There are delicious and the best possible place. Okay. Know what happens? There is a authority. Also, there are many specks. Little to stock market. Let&#x27;s see, there are insider treaty. What is it? Insider duty? See, uh, there are many big companies that are listed on stock exchanges. Okay, so what happens? Vendor Vendor Rizzo Inherent excess off employees walking in Those corporations who are listed on the stock exchanges manipulate the stock prices on the stock market because of having inherent access to public sensitive information. Okay, that information, which is not required to be disclosed to the public. So there comes insider trading so inside that is used for employee employer off the company whose shares understood on the stock exchange. OK, so an employee who is having access to such sensitive information would likely to be, you know, manipulate the prices on the stock exchange and data they come. Also, buyer and seller protection perfection. There are a lot off intimate trees in mourning. The stock market process, like portfolio manager and mutual fund distributors stalled, broke. Okay, so there are many types of intimately involved in the stock market. Now what happens? Buyers and sellers dealing with such time of intermediaries will not be fooled. Okay, so that is Why the responsible authority? Okay, prepared rules regarding that on So, Captain, there are also revelations. Let it took capital raising. I&#x27;m treating. Okay, So if you have family with the stock market, you will be knowing that they&#x27;re not different. Timings off opening and closing off the market like me have general linings off market and of it, you know, walls. So they are similar timings available in the stock market. Okay. And there are many dives off trading regulations developed by the competent authority. Okay, so we have understood this down, this one and this one all in one. Okay. Relation to with respect, relation to stop. However, the rules regarding these three will only be they&#x27;ve learned by one authority that we know as Securities and Exchange Commission. Okay, because it is the authority which has been designated by government, who would take such decisions and frame the use According Okay, So we have derived. Never solution. OK? And that this and that matches shore. Leave it. Joyce. Be okay. So you can write down sheet crunchy on your books for future difference, however, are incorrect choices. Joy, speed. That&#x27;s all forever. Solution. Thank you.

Problem 15 Hard Difficulty

The accounting information of a privately held company is generally available to all of the following
except for ________.
A. governmental agencies
B. investors
C. creditors and lenders
D. competitors

Answer

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting