Questions: 1 Which of the following users is not considered an external user of accounting information? a. An Investor b. The government c. A manager d. A creditor

1
Which of the following users is not considered an external user of accounting information?
a. An Investor
b. The government
c. A manager
d. A creditor
Transcript text: 1 Which of the following users is not considered an external user of accounting information? a. An Investor b. The government c. A manager d. A creditor
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Solution

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The answer is C: A manager.

Explanation for each option:

a. An Investor: Investors are considered external users of accounting information because they are not involved in the day-to-day operations of the company. They use financial statements to make informed decisions about buying, holding, or selling their investments in the company.

b. The government: The government is an external user of accounting information. It uses financial data to ensure compliance with regulations, assess taxes, and analyze economic data for policy-making purposes.

c. A manager: Managers are considered internal users of accounting information. They use this information to make strategic decisions, plan, and control operations within the organization.

d. A creditor: Creditors are external users of accounting information. They use financial statements to evaluate the creditworthiness of a company and to make decisions about lending money or extending credit.

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