BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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LHDN
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Management
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Creditors.
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Customers.
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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 the outsiders that lend money to the company. Therefore, creditors would not be considered internal users of accounting data for a company.
Detailed explanation-4: -Two primary external users of accounting information are investors and creditors.