Question

State true of false :

Accounting is useful only to the owner.

• A. True
• B. False

Answer 1

The correct option is B False

The users of accounting are mainly classified into two categories

1. Internal Users: Internal users are inside the business of the entity.

Example: managers, owners, directors, CEO, CFO etc.

2. External Users: These are outside the affairs of the entity.

Example: Creditors. Government, Shareholders etc.

So, accounting is useful for all these users and not just for owners.