Answer to Question #255458 in Macroeconomics for PEter

Question

1.Which of the following statements about users of accounting information is incorrect?

a.

Regulatory authorities are internal users.

b.

Management is an internal user.

c.

Taxing authorities are external users.

d.

Present creditors are external users.

Answer 1

Solution:

The correct answer is a. Regulatory authorities are internal users.

 

Regulatory authorities are not internal users but rather external users in the form of State or Federal governments that have the authority to oversee and enforce regulations regarding various issues. They are normally created by the government to control all kinds of businesses.