External users of accounting information have a financial interest in an entity but are not involved with the day-to-day operations of the enterprise.

Question

Quizplus · Accepted Answer

External users of accounting information include investors, lenders, suppliers, customers, and government agencies who have a financial interest in an entity but are not directly involved in its operations. They rely on financial statements and other accounting reports to make informed decisions about their investment, lending, buying, or regulatory activities.

External Users of Accounting Information Have a Financial Interest in an Entity