Which of the following can be said of external users of financial information?

Question

Quizplus · Accepted Answer

External users of financial information, such as investors and creditors, rely on the financial statements to make informed decisions about investing or lending money to a company. They do not need detailed records of the business, as this information is primarily used by internal users such as management. They are not responsible for the preparation of financial statements, as this is the responsibility of the company's accounting staff. Additionally, they should not rely solely on management's opinion about the company's investment potential, as this may be biased or incomplete.

Which of the Following Can Be Said of External Users