Introduction to Accounting · Class 11 · CBSE · Commerce Accountancy
Who among the following are classified as external users of accounting information?
Practice question from Introduction to Accounting (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-1C9749
Who among the following are classified as external users of accounting information?
- A.Board of Directors
- B.Managing Director
- C.Tax AuthoritiesCorrect answer
- D.Full-time departmental managers
Solution
Tax authorities, creditors, and prospective investors are external users because they operate outside the management hierarchy of the business enterprise.
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