Chapter 1, Problem 2QS

To determine

Concept Introduction:

Internal Users:

The internal users are the users of the information who are within the organization. The internal users of the information are the users who directly manage the organization. The internal are the members and the other individuals of the organization who need or use financial information in running and managing the business. The examples of internal users are purchasing manager, human resource manager, production manager, all other managers, employees, CEOs or directors etc.

External Users:

The external users are the users of the information who are outside the organization. The external users of the information are the users who do not directly run the business or the organization and have an access on the information to the point, the internal users provided the information to external users.

To Identify:

The following users as internal (I) or an external (E) user of accounting information −

1. Customers
2. Suppliers
3. External auditors
4. Business press
5. Managers
6. District attorney
7. Shareholders
8. Lenders
9. Controllers
10. FBI and IRS
11. Consumer group
12. Directors