External Users of Accounting Information Quiz
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Questions and Answers

Which group below is not considered an external user of accounting information?

  • Managers and employees (correct)
  • Present and potential investors
  • Government and their agencies
  • Creditors, lenders, and suppliers
  • Who among the following is typically interested in financial statements for decision-making purposes?

  • Present and potential investors (correct)
  • Government and their agencies
  • Managers and employees
  • Creditors, lenders, and suppliers
  • Which group is interested in financial information related to the company's ability to repay loans?

  • Managers and employees
  • Government and their agencies
  • Creditors, lenders, and suppliers (correct)
  • Present and potential investors
  • Among the options, who is primarily concerned with a company's compliance with tax regulations?

    <p>Government and their agencies</p> Signup and view all the answers

    Which group is particularly interested in financial data concerning the company's profitability and growth potential?

    <p>Present and potential investors</p> Signup and view all the answers

    Study Notes

    External Users of Accounting Information

    • Creditors, lenders, and suppliers rely on accounting information to assess a company's creditworthiness and ability to repay debts.
    • Present and potential investors use accounting information to make informed decisions about investing in a company.
    • Government and their agencies utilize accounting information to regulate businesses, collect taxes, and monitor economic activity.

    Exception: Internal Users

    • Managers and employees within an organization use accounting information to make operational decisions, manage resources, and evaluate performance.

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    Description

    Test your knowledge on external users of accounting information by identifying which group does not belong among creditors, lenders, suppliers, investors, government agencies, managers, and employees.

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