Which of the following is the internal user of financial statements?
Correct answer: D. Manager of the business
- A. Creditor of the business
- B. Government agency
- C. Shareholder of the business
- D. Manager of the business
Explanation
A manager is an internal user because the manager works within the business and uses financial information for planning, control and decisions. Creditors, government agencies and ordinary shareholders are external 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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