Which of the following statements about users of financial accounting information is true?
A)Users of financial accounting information are the same as the preparers.
B)Users of financial accounting information normally work for the entity.
C)Users of financial accounting information are normally external to the firm.
D)Users of financial accounting information normally have direct access to the information about the entity.

Question

Quizplus · Accepted Answer

Users of financial accounting information are typically external parties such as investors, creditors, analysts, and regulatory agencies who rely on the information to make decisions about the entity. Preparers of financial statements are typically internal employees who compile the financial information for presentation to external users. These external users do not have direct access to the information and rely on the financial statements to provide an accurate representation of the entity's financial performance and position.

Which of the Following Statements About Users of Financial Accounting