1. Explain why each of the following groups might want financial accounting information. What type of financial information would each group find most useful?

a. The company’s existing shareholders.

b. Prospective investors.

c. Financial analysts who follow the company.

d. Company managers.

e. Current employees.

f. Commercial lenders who have loaned money to the company.

g. Current suppliers.

h. Debt-rating agencies such as Moody’s or Standard and Poor’s.

i. Regulatory agencies such as the Federal Trade Commission.

2. Identify at least one other group that might want financial accounting information about the company, and describe how it would use the information.