Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions: 6

Answer

The external users of the accounting data are the people outside of business, who have an interest in the performance of the business. They include investors, suppliers, creditors, customers, banks and government.

Work Step by Step

Suppliers, creditors and banks have an interest in the performance of the business to assess the credibility mostly. Investors try to assess how profitable a firm is by looking at the accounting data. And the government is interested to find out the amount of tax and subsidy.
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