Taxing authorities are considered accounting information users with an indirect financial interest.

Question

Quizplus · Accepted Answer

Taxing authorities use accounting information to assess and collect taxes from individuals and businesses. Although they do not have a direct financial interest in the financial statements, their assessments and collections can affect the financial results of a company. Therefore, they are considered accounting information users with an indirect financial interest.

Taxing Authorities Are Considered Accounting Information Users with an Indirect