BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

ACCOUNTING FOR MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one of the following is not an external user of accounting information?
A
Investor
B
Creditor
C
Manager
D
Customer
Explanation: 

Detailed explanation-1: -An external user of accounting data is one that is not an employee or manager within the company and is not involved in the day to day operations. The CFO is considered an internal user. Economic planners, labor unions, and customers are all external users.

Detailed explanation-2: -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.

Detailed explanation-3: -Creditors are not the internal users.

Detailed explanation-4: -The finance Directors are not an external user of accounting data.

Detailed explanation-5: -Internal users include managers and other employees who use financial information to confirm past results and help make adjustments for future activities. External users are those outside of the organization who use the financial information to make decisions or to evaluate an entity’s performance.

There is 1 question to complete.