Accounting Information Users

Question

Part I: Accounting Information Users

Financial statement users can be internal or external. Choose one of the following stakeholders (or one of your own) and discuss which accounting information might be the most important or relevant to them and how they might use it:

Investors.

Company Managers.

External Auditors.

IRS.

Lenders.

PART II: The Value of Cash Flow Statements

Discuss whether or not you believe the cash flow statement is a useful tool for evaluating company performance. Provide an example to support your rationale.

PART III: Hertz Bankruptcy

Read the article, Why Hertz Landed in Bankruptcy Court When its Rivals Didn't.

https://www.cnbc.com/2020/08/17/why-hertz-landed-in-bankruptcy-court-when-its-rivals-didnt.html

Discuss which bankruptcy prediction model described in your textbook, would have been most effective in predicting the Hertz bankruptcy. Provide background and support for your rationale.