The managers of a business prepare financial statements to present meaningful information about that business's activities to external users. Who are the external users?
A)owners
B)lenders
C)regulators
D)tax authorities
E)all of the above

Question

Quizplus · Accepted Answer

External users include all of the choices given: owners, lenders, regulators, and tax authorities. Owners want to know the financial health of their investment, lenders want to assess the risk of lending money to the business, regulators need to ensure compliance with laws and regulations, and tax authorities use financial statements to calculate taxes owed.

The Managers of a Business Prepare Financial Statements to Present