Which of the following statements is true concerning external users of financial information?
A)External users need detailed records of the business to make informed decisions.
B)External users are primarily responsible for the preparation of financial statements.
C)External users rely on the financial statements to help make informed decisions.
D)External users rely on management to tell them whether the company is a good investment.

Question

Quizplus · Accepted Answer

External users rely on the financial statements to help make informed decisions. They do not need detailed records of the business, nor are they responsible for the preparation of financial statements. External users also cannot solely rely on management to tell them whether the company is a good investment - they need to analyze financial information themselves.

Which of the Following Statements Is True Concerning External Users