Question

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.
a. True
b. False

Answer 1

Answer:

False

Explanation:

The internal users of financial information are those people with an organisation that makes use of financial information.

they include :

• The board of directors
• Employees
• Managers.

The external users of financial information are those who aren't within an organisation that makes use of financial information.

They include :

• Investors
• Lenders
• Government
• Regulatory bodies

External users of financial information use financial information in making decisions of whether to invest in or lend to a company