Identify the external user of financial information or financial statements.
Management of the business
CFO of the business
Employees of the business
Investors of the business
A
Management of the business
B
Employees of the business
C
CFO of the business
D
Investors of the business
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Solution
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Financial accounting information is used for decision making by external users. External users, are not involved in the operations of the company but hold some financial interest. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
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