BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Creditors (bankers)
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Investors
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Company manager
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The IRS
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Detailed explanation-1: -Users of accounting information are internal and external. 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.
Detailed explanation-2: -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-3: -Examples of internal users are owners, managers, and employees. 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-4: -Creditors are not the internal users.
Detailed explanation-5: -Government is an external user of the accounting information as it is not part of the business.