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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 1-2Â Users of Accounting Information and Their Needs
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Havre Company would like to buy a building and equipment to produce a new product line. In- formation about Havre is more useful to some people involved in the project than to others.
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Required
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Complete the following chart by identifying the information listed on the left with the user’s need to know the information. Identify the information as one of the following:
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a.      Need to know
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b.      Helpful to know
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c.      Not necessary to know
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User of the Information
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Information                                                             Management           Stockholders              Banker
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1. Amount of current debt, repayment schedule, and interest  rate |
                  |
                  |
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2. Fair market value of the building |
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3. Condition of the roof and heating and cooling, electrical, and plumbing systems |
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4. Total cost of the building, improvements, and equipment to set up production |
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5. Expected sales from the new product, variable production costs, and related selling  costs |
                   |
                   |
                   |
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