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

Question

Quizplus · Accepted Answer

External users of financial information, such as investors, creditors, and analysts, rely on the financial statements to make informed decisions about the company. They need accurate and reliable financial information to assess the company's financial health and performance. They do not prepare the financial statements themselves and cannot solely rely on management's perspective about the company.

External Users of Financial Information