The Internal Revenue Service is an external user of accounting information and a
A)taxing authority.
B)labor union.
C)customer.
D)regulatory agency.

Question

Quizplus · Accepted Answer

The Internal Revenue Service (IRS) is a taxing authority and is responsible for collecting taxes from individuals and businesses in accordance with the tax laws of the United States. As an external user of accounting information, the IRS relies on accurate financial statements and tax returns to determine the amount of tax owed by taxpayers. Therefore, choice A is the most appropriate answer as it accurately reflects the role of the IRS in the accounting and taxation process.

The Internal Revenue Service Is an External User of Accounting