BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Store manager
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Chief Executive Officer
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Creditor
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Chief Financial Officer
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Detailed explanation-1: -Creditors are not the internal users. Creditors are outsiders and they are not intended to be the internal user of management information.
Detailed explanation-2: -Creditors are external users of accounting information they are external entities that deal with the firm. They are linked to the business by providing financing through loans or goods on credit and their interests are based on the ability of a firm to pay its debts.
Detailed explanation-3: -Managerial accounting. focuses on internal users-executives, product managers, sales managers, and any other personnel within the organization who use accounting information to make important decisions.
Detailed explanation-4: -Answer and Explanation: A c) creditor is not an internal user. Creditors are external users who rely on financial accounting rather than managerial accounting to make decisions.
Detailed explanation-5: -Creditors are the outsiders that lend money to the company. Therefore, creditors would not be considered internal users of accounting data for a company.