Question

Why do internal users need financial data? A. to make business decisions and compare business performance with previous years B. to invest in the business’s stocks C. to invest in stocks and make business decisions D. to analyze the risk involved in lending money to the business E. to understand the risk involved in lending resources to the business

Answer 1

Answer:

Internal users refer to management members of a company and other people who use financial information to run and manage the business

Explanation:

They work within the business and make business decisions. Accounting information is important for all management levels. In order to make decisions about the company's future, the top managers need information about the past performance of the company.

To determine the results of their past decisions, they need data. The financial statements will determine the company's performance and its financial position and guide them in making future decisions.

Answer 2

Answer: A. To make business decisions and compare business performance with previous years

Explanation:

Management uses accounting information for evaluating and analyzing an organization's financial performance and position, to take important decisions and appropriate actions to improve the business performance in terms of profitability, financial position, and cash flows.

Internal users refer to the members of a company's management and other individuals who use financial information in running and managing the business. They work within the company and make decisions for the business.