External users room creditors, investors, government, commerce partners, regulation agencies, global standardization agencies, journalists and internal users space owners, directors, managers, employee of the company.

You are watching: Which of the following is an external user of accounting information?

Let’s look at who space the internal and external users of account information and why they use it.


Internal individuals of bookkeeping information

Internal users are that individual who runs, manages and operates the daily activities of the inside area of an organization.

So who room the inner users that account information;

Owners and Stockholders.Directors,Managers,Officers.Internal Departments.EmployeesInternal Auditor.

Managerial accountancy identifies, measures, analyzes and communicates the financial info needed by management to plan, control, and also evaluates a that company operations because that the interior users.

Accounting’s score is to administer necessary details for the administration or additionally can be characterized as internal users.

External customers of audit information

External users space those people who take interest in the account information of one organization however they space not part of the organization’s administrative process.

External users have a direct or indirect attention in accountancy information.

Financial audit is the procedure for the ready of gaue won reports the the enterprise for usage by both internal and external parties.

These reports are crucial to the exterior users of audit information.

Examples of exterior users of audit information are;

Creditors.Investors.Government.Trading partners.Regulatory agencies.International standardization agencies.Journalists.

Creditors and Investors are the most continuous example of external users amongst many other external users.

The outside users of accounting are;


Creditors or lenders use the accounting information to find out the capability of the borrower come repay the loan, the number of assets and also liabilities that the borrower, proof of income, financial position, etc. Before he or she lend the money come the financial entity.


Investors room the resources providers that a business.

Before investing, one investor sees the jae won report for figuring out the possibilities of the organization in the future. Financial info is crucial for an investor because that making sure that the invest is secure.

Trading partners

Business needs company to perform business, it is the truth.

Associate trading suppliers look at the financial information and decide come trade through the particular economic entity.

Government regulatory Agencies

The financial information is an essential for federal government regulatory agencies as it permits them to screen the economy and market.

Lawmakers and economic planners

It is essential to store a nation’s financial structure up-to-date with global changes. That is a job for lawmakers and economic planners.

The audit information gives information that is necessary for making changes to the existing laws at the right moment for the economic climate and culture betterment.

Other examples

There room other exterior users because that example; job unions, customers and consumers, suppliers, SEC, taxation authority, chamber of commerce, press, competitors, auditors, etc.

Anybody exterior of the regulating radius of an economic entity is interested in the financial info of it, is defined as an external user.

For example to the statement; an MBA student searching for financial info on Google, he/she is the outside user that the bookkeeping information that Google.

The financial reports or information are the result of the accounting procedure that moved to the customers in 2 forms-internal and also external.

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These reports used for reliable for operating the service by the inner users, top top the other hand, the external users usage the details to obtain a real picture of the gaue won state of the organization.