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Question

Which of the following would be considered as external users of accounting information's?
  1. Shareholders
  2. Board of Directors
  3. Finance manager
  4. Sales manager

A
Board of Directors
B
Shareholders
C
Sales manager
D
Finance manager
Solution
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There are number of users who are interested in the accounting information relating to the business. These users may be classified as internal and external users.
1) Owner
2) Management
3) Creditors
4) Employees
5) Investors/Shareholders
6) Government
7) Researchers
Shareholders since not related to the management of business operations are considered as external users.

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