External users of financial information:
A) Make operating decisions for a company.
B) Are not directly involved in operating the company.
C) Make strategic decisions for a company.
D) Include internal auditors and consultants.
E) Are those individuals involved in managing and operating the company.

Question

Quizplus · Accepted Answer

External users of financial information are not directly involved in operating the company but use financial information for decision-making purposes, such as investors, creditors, customers, regulators, and analysts. Choices A, C, and E refer to internal users who are directly involved in operating and managing the company. Choice D also refers to internal users who provide services to the company but may not necessarily use financial information for decision-making purposes.

External Users of Financial Information