Which is not considered an external user of financial information?

Which is not considered an external user of financial information?

d) Managers are not considered external users of financial statements.

Who is internal user?

Definition: An internal user is a person inside or an organization that helps run its operations and uses the company’s financial information to make decisions.

What is an external user?

External users are those entities interested in the financial results of a business, but who take no part in operating the entity.

Who are the external users of financial information?

External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

Is a creditor an external user?

External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists and internal users are owners, directors, managers, employees of the company.

Which of the following is the external users of financial statements?

Creditor of the business is the external user of financial statements.

Who is considered an external user?

Anyone outside the company who do not participate in the day-to-day operations of the business and makes use of the company’s financial information is considered an external user. This includes analysts, researchers, students, media reporters, and publishers.

Who are the external users of accounting information?

There are number of users who are interested in the accounting information relating to the business. These users may be classified as internal and external users. Shareholders since not related to the management of business operations are considered as external users. Was this answer helpful?

What are the limitations of external users?

External users have limited authority, ability and means to access the required information. They have to rely on the financial statements and annual reports, auditor’s report and directors’ report etc.

What is an internal user?

Internal users are to those who use information in making decisions for the business. Internal users actually refer to the members of the company’s management: top management, middle management, and lower management.