Which one of the following groups is considered an internal user of financial statements?
A) A bank reviewing a loan application from a corporation.
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) Factory managers that supervise production line workers.

Question

Quizplus · Accepted Answer

The factory managers mentioned in choice D are internal users of financial statements because they are within the company structure and use financial statements to make decisions about their own operations and budgeting. The other choices involve external users such as a bank, a labor union, and financial analysts for a brokerage firm, who use financial statements for their own purposes outside of the company.

Which One of the Following Groups Is Considered an Internal