ECONOMICS

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: -Internal users are those within an organization who use financial information to make day-to-day decisions. Internal users include managers and other employees who use financial information to confirm past results and help make adjustments for future activities.

Detailed explanation-3: -Managerial and cost accountants are good examples of internal users. They are managers inside the organization who have knowledge about the inner workings of the company and can use this knowledge to improve the business’ performance. Accountants are the only internal users, however.

Detailed explanation-4: -Internal Users of Financial Statements Managers are the primary users of financial statements because they need the information to do their jobs. They have to make decisions such as whether to add debt or how to maintain cash flow.