Question

External users of accounting information are /

a)Researchers
b)Government
C)Prospective Investors
d)All of the above​

Answer 1

Answer:

External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

Answer 2

Answer :

The correct option is (d)

Explanation :

An information system is a grouping of various pieces of technology used to disseminate information (IS).An information system consists of hardware, software, computer networks, information, information system users, and the system's housing (IS).Accounting is a tool used to convey financial and other information about different elements of businesses and non-profit organisations to people, organisations, governments, etc.IT and GAAP are connected by accounting information systems (Generally Accepted Accounting Principles).For instance, when a company applies for a loan from a bank, it must provide information about its business operations, including operating profit or loss and financial status. Similar to this, stakeholders need access to financial data about the company in order to assess management performance.

The following are the users of the accounting information-

• Owners/Shareholders

• Researchers

• Customers

• Employees

• Creditors, Bankers, and other Lending Institutions

• Government

• Regulatory Agencies

• Managers

• Prospective Investors

Hence we can conclude that , the Researchers, Government, Prospective Investors are the users of the accounting information.

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