Asked by Nathan Vandervoort on Jun 29, 2024
Verified
External users of financial information:
A) Are those individuals involved in managing and operating the company.
B) Include internal auditors and managers.
C) Are not directly involved in operating the company.
D) Make strategic decisions for a company.
E) Make operating decisions for a company.
External Users
Individuals or entities outside a company who use its financial information, such as investors, creditors, and regulatory agencies.
Financial Information
Data regarding the financial status of an entity, including income, expenses, assets, and liabilities.
- Distinguish between the requirements of internal and external stakeholders regarding financial data.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
C
Explanation :
External users are those who are not directly involved in operating the company, such as investors, creditors, suppliers, customers, and government agencies. Choices A, B, D, and E refer to internal users of financial information.
Learning Objectives
- Distinguish between the requirements of internal and external stakeholders regarding financial data.
Related questions
Discuss Internal and External Users of Accounting Information ...
Identify Each of the Following as Either Internal or External ...
An Example of an External User of Accounting Information Is ...
Accounting Information Users Need Reports About the Economic Activities and ...
Which of the Following Groups Is Considered to Be Internal ...