Question

xternal users of financial information: Multiple Choice Are not directly involved in operating the company. Make strategic decisions for a company. Include internal auditors and managers. Are those individuals involved in managing and operating the company. Make operating decisions for a company.

Answer 1

Answer:

The correct answer is letter "A": Are not directly involved in operating the company.

Explanation:

The financial information of a company can be of use of external parties when they are interested in taking part in the firm in the form of investments, massive labor hand or to report transaction information to a governmental agency. Those parties are not part of the firm at the moment of asking for the data.  

The financial statements provided for such purposes are the organization's Balance Sheet, Income Statement, and Cash Flow Statement.

Answer 2

Answer:

Are not directly involved in operating the company.

Explanation:

External user of financial information are those that are not directly involved in the business's operations. They do not make decisions for the company but rather are interested in the financial statements of the company for various reasons.

Example of external users include stockholders, creditors, investors, government, journalists, and regulatory agencies.

Internal users in the other hand deal directly with the company and include managers, directors and employees.