Asked by Jennifer Forest on Jun 06, 2024

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An example of an external user of accounting information is the federal government.

External User

External User refers to individuals or entities outside of a company who use its financial statements to make decisions, such as investors, creditors, and regulatory agencies.

Federal Government

The national government of a federated state, which holds the authority to govern the issues that affect the entire country.

  • Identify the informational requirements of internal versus external users of financial data.
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Hilula OkanulaJun 08, 2024
Final Answer :
True
Explanation :
The federal government is an external user of accounting information as it uses financial statements to calculate taxes owed by individuals and businesses, and to monitor compliance with financial regulations.