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External users are not directly involved in the running of the business, they include shareholders, lenders, customers, suppliers, regulators, lawyers, brokers and the press. Yet these users can affect and be affected by the organization. External users rely on accounting information to make better decisions in pursuing their goals for the organization.

Internal Users of accounting information are those individuals directly involved in managing and operating an organization. They include managers, officers, and other important internal decision makers. Internal users make the strategic and operational decisions for the business or organization. The internal role of accounting is to provide information to help improve the efficiency or effectiveness of an organization in delivering products or services to the marketplace.

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13y ago
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12y ago

Those who use accounting information for the selfness of company/enterprise or for taking decision,are called internal users.

Those who use accounting information for ownself and they have no ability to take decision.

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Q: Why did the external users and internal users use accounting information?
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Difference between external users and internal users of accounting information?

External Users of accounting information are NOT directly involved in running the organization. Internal Users of accounting information are those individuals directly involved in managing and operating the organization.


What group or groups of people are not considered to be the external users of accounting information?

Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.


Is Managerial accounting information used by external and internal users equally?

Yes


Two common areas of accounting that respectively provide information to internal and external users are?

Internal users with information are managerial accounting is to provide relevant and timely information for managers' and employees' decision-making needs. (private accounting) External users of accounting information include customers, creditors, and the government. These users are not directly involved in managing and operating the business are call financial accounting. Their job is to provide relevant and timely information for decision-making needs of users outside of the business. 1. managerial accounting and financial accounting


The main users of accounting information?

This are in two groups, external users and internal users. External come from outside the business while internal are from inside the business. Examples of external are insurers, suppliers, customers, government tax auditors, etc while internal accounting users are within the business, thus shareholders, owners of the business


Is a vice president an internal or external user of Accounting?

internal users


Which type of accounting information is intended to satisfy the needs of external users of accounting information?

Financial accounting


Are shareholders internal or external users of accounting information?

Internal users would be managers so that they can make decisions about how to manage and also see how effectively they have managed. External users would be potential investors, the Government, lenders, the public, unions...


Who are the Internal and External Users of Information?

Internal users of information are those business units within the organization. While, external users of information are those business linkages (outside) of the organization.


Examples of external users of accounting information?

external aiditor,shareholder,goverment etc


Some example of internal users of accounting information?

Managers


List users of accounting information and state their needs?

There are two types of users( internal and external):-List of internal users:-employeesmanagementshareholders/owners.List of external users :-Those who have economic transactions likesupplierscreditorsbankersfinancial institutionsOthers like:-competitorsgovernment and regulatory agenciesauditorsresearchers and academiciansrepresentatives of others interest like brokers ,underwriters etcpotential shareholders