BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Employees union are external users
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Inland Revenue Board is external users
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Labor Unions are internal users
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Managers are external users
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Detailed explanation-1: -All the following statements about users of accounting information are correct EXCEPT Present creditors are considered as external users Taxing authorities are considered as external users Regulatory authorities are considered as internal users.
Detailed explanation-2: -Shareholders since not related to the management of business operations are considered as external users.
Detailed explanation-3: -There are three primary users of accounting information: internal users, external users, and the government (which is a specific form of an external user). Each group uses accounting information differently and requires the information to be presented differently.
Detailed explanation-4: -Which statement about users of accounting information is incorrect? Management is considered an internal user.