Which of the following would be classified as external users of financial statements?
A)Stockholders and management of the company
B)The controller of the company and a company's stockholders
C)The company's marketing managers
D)The creditors and stockholders of the company

Question

Quizplus · Accepted Answer

External users refer to individuals or groups who do not have direct involvement in the day-to-day operations of the company, but rely on financial statements for decision-making purposes. Creditors and stockholders are examples of external users, as they have a financial interest in the company but are not part of its management team or employees. Choices A, B, and C include individuals who may have internal access to financial information and are not considered external users.

Which of the Following Would Be Classified as External Users