In financial accounting, the investors, banks, suppliers and government agencies are classified as _____________?

Correct answer: A. external parties

  • A. external parties
  • B. internal parties
  • C. environmental parties
  • D. transactional partiesHire Grant Writers

Explanation

Investors, banks, suppliers, and government agencies are outside the business, so they are external users of financial accounting information. Managers and employees are examples of internal users.

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About Financial Statements

Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.

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