Who are the external users of information? (2024)

FAQs

Who are the external users of information? ›

Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

Answer and Explanation:

The two most common types of external users are investors and creditors.

Internal and external end users

Internal is intended for employees and contractors of your organization. External is for your customers, partners, or other external parties who use your OutSystems apps. By default in OutSystems, all end users are classified as internal until you configure the domains that you own.

External users of financial information may include the following: owners, creditors, potential investors, labor unions, governmental agencies, suppliers, customers, trade associations, and the general public.

External Users

These users need to know the company can repay its loans. These users want to know about company profits and to compare the company to other companies. These users want to know about the company's sustainability and consistent quality of goods and services.

External users, are not involved in the operations of the company but hold some financial interest. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

-External users are individuals and or institutions outside of the facility state, local government, and research facilities.

Short Answer. External Users are people outside the business who use financial information. It includes investors, creditors, tax authorities, and customers.

External customers, also known as the clients or clientele, are the people who pay for the goods and services that a company provides. They generally have no other connection to the company beyond their purchases.

By relationship with the organization

While external suppliers are companies that provide goods or services so that their clients can conduct their business successfully, internal suppliers form part of the enterprise's own workforce.

Is an external user of financial information? ›

External users of information include present and potential Investors (shareholders), Creditors (Banks and other Financial Institutions, Debenture holders and other Lenders), Tax Authorities, Regulatory Agencies (Department of Company Affairs, Registrar of Companies), Securities Exchange Board of India, Labour Unions, ...

Primary users of the financial statements are considered existing and potential investors, creditors, and lenders. Primary users obtain financial statement information and allow them to understand the overall health of the company such as its net cash flow status etc.

Final answer:

Senior company management is not an external user of financial information as they are directly involved in the operations of the company, unlike the other listed options.

Internal users are employees of your organization. External users are individuals who are not part of your organization such as customers, partners, suppliers, vendors, clients, or other third parties.

External data helps businesses better understand the market they're operating in as well as their competition. Companies can better analyze the competitive landscape and be ahead of most companies in the market.

External data is information that originates outside the company and is readily available to the public. External data is used to help a company develop a better understanding of the world in which they are operating.

Users of financial ratios include parties external and internal to the company: External users: Financial analysts, retail investors, creditors, competitors, tax authorities, regulatory authorities, and industry observers. Internal users: Management team, employees, and owners.

The two most common types of external users are investors and company officers. Answer: False, The two most common types of external users are investors and creditors.

Banks and Financial companies are the external users of accounting information which is most interested in knowing the long term solvency position of the firm.