Question

Explain any two external users of accounting experience

Answer 1

External users are those users who are not indulged in the interior business and they use information for accountant business

Some ex are : investers, tax authorities

Answer 2

Here ur answer.

External users of accounting information;

1. CREDITORS: Creditors are those parties who supply goods and services on credit. It is a general business practice that a large number of suppliers remain invested in a credit sales.
Before obtaining a credit , Creditors. satisfy. themselves. about the. credit.worth of the business. The financial statements of account prepared at the end of accounting period help them in making such assessment.


2. Government and it's authorities: The government make use of financial statements to compile national income accounts and other information.The information available to it enable it to take policy decisions.

Government levies varied taxes ,GST and income tax.These government authorities assets correct tax files after an analysis of the financial statements.