Who are NOT generally considered as external users of accounting information supplied by a business?Group of answer choicesLocal governmentsLabour unionsInvestment analystsSales managers
Question
Who are NOT generally considered as external users of accounting information supplied by a business?Group of answer choicesLocal governmentsLabour unionsInvestment analystsSales managers
Solution
Sales managers are generally not considered as external users of accounting information supplied by a business. They are typically internal users because they work directly within the business and use the accounting information for decision-making and strategy planning within the company. External users, like local governments, labour unions, and investment analysts, do not participate in the day-to-day operations of the business but use the accounting information for other purposes. For example, local governments may use it for tax purposes, labour unions may use it for negotiations, and investment analysts may use it for making investment decisions.
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