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 - Self-Test Questions - Page 26: 3

Answer

(d) Regulatory authorities are considered internal users, and external users are entities or individuals.

Work Step by Step

In fact, regulatory authorities are not considered internal users; they are external users. Regulatory authorities are not employed by and are not part of the company. They use the financial statements to make sure company are operating within prescribed rules.
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