Explanation Users of financial information : People who rely on accounting information to make best decisions or choices from the information are known as users of accounting information. Types of users : Internal users of accounting information: Internal users of accounting information depend on the information, to check to what extent the business has achieved its goals, any other measures to be taken to achieve the goals, and progress further. The internal users are company’s managers and employees. These are the users working for the company. External users of accounting information: External users of accounting information depend on the information to check the progress and profitability of the business, assess the ability of the company to repay the liabilities, measure income of the company, and evaluate the return of the company for the investment. The external users are customers, creditors, taxing authorities, and investors. These are the users who do not work for the company. Explanation for correct answer : Employees are the internal users of accounting information...

Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)

5th Edition

ISBN: 9780134078939

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

See similar textbooks

Question

Chapter 1, Problem 2QC

To determine

Find the one who is not an external user of accounting information.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 1, Problem 1QC

Chapter 1, Problem 3QC

Students have asked these similar questions

Which of the following types of businesses require financial information to operate effectively?

The first step in solving an ethical dilemma is to identify the alternatives. weigh the impact of each alternative on various stakeholders. O recognize an ethical situation and the ethical issues involved. O identify and analyze the principal elements in the situation.

Which of the following is an internal user of a company’s financial information?a. board of directors c. stockholders of the companyb. regulatory agencies d. long-term creditors of an enterprises

Chapter 1 Solutions

Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)

Ch. 1 - Prob. 1QC Ch. 1 - Prob. 2QC Ch. 1 - Prob. 3QC Ch. 1 - Prob. 4QC Ch. 1 - Prob. 5QC Ch. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...

Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQ Ch. 1 - Prob. 3RQ Ch. 1 - Prob. 4RQ Ch. 1 - Prob. 5RQ Ch. 1 - Prob. 6RQ Ch. 1 - Prob. 7RQ Ch. 1 - Prob. 8RQ Ch. 1 - Prob. 9RQ Ch. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQ Ch. 1 - Prob. 13RQ Ch. 1 - Prob. 14RQ Ch. 1 - Prob. 15RQ Ch. 1 - Prob. 16RQ Ch. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SE Ch. 1 - Prob. 1.3SE Ch. 1 - Prob. 1.4SE Ch. 1 - Applying accounting assumptions and principles...Ch. 1 - Using the accounting equation Kenmore Handyman...Ch. 1 - Using the accounting equation Joshs Overhead Doors...Ch. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 - Prob. 1.12SE Ch. 1 - Use the following injo17nation to answer Short...Ch. 1 - Prob. 1.14SE Ch. 1 - Prob. 1.15SE Ch. 1 - Calculating Return on Assets (ROA) Refined Water...Ch. 1 - Prob. 1.17E Ch. 1 - Prob. 1.18E Ch. 1 - Prob. 1.19E Ch. 1 - Using the accounting equation Compute the missing...Ch. 1 - Using the accounting equation Green City Builders...Ch. 1 - Prob. 1.22E Ch. 1 - Using the accounting equation During 2016,...Ch. 1 - Using the accounting equation The records of...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28E Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Preparing the financial statements Estella Osage...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Preparing the statement of cash flows Bean Town...Ch. 1 - Calculating return on assets (ROA) Alec Appliance...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Preparing financial statements Presented here are...Ch. 1 - Preparing financial statements Click a Pix...Ch. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Prob. 1.45AP Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.47BP Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.49BP Ch. 1 - Prob. 1.50BP Ch. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFC Ch. 1 - This and similar cases in later chapters focus on...

Knowledge Booster

Find the one who is not an external user of accounting information.

Solution Summary: The author explains that employees are internal users of accounting information, while external users are customers, creditors, taxing authorities, and investors.

Find the one who is not an external user of accounting information.

Want to see the full answer?

Chapter 1 Solutions