Which one of the following groups is considered an internal user of financial statements?
A)A supplier considering selling to the company on credit.
B)The labor union representing employees of a company that is involved in labor negotiations
C)The financial analysts for a brokerage firm who are preparing recommendations for the firm's brokers on companies in a certain industry,
D)Managers of the company that supervise production workers.

Question

Quizplus · Accepted Answer

Managers of the company that supervise production workers are considered an internal user of financial statements. Internal users are individuals or groups within the organization who use financial statements for decision-making purposes. Production managers need financial statements to make decisions about the production process, such as purchasing raw materials and scheduling production runs. The other options are external users, as they are outside entities that use financial statements for their own purposes.

Which One of the Following Groups Is Considered an Internal