Question

Which of the following is/are external users of accounting information?

• A. Shareholders/investors
• B. Creditors
• C. Government agencies
• D. All of the above

Answer 1

The correct option is D All of the above

There are various agencies or stake holders interested to know about the accounting information. These stakeholders may be internal and external.

Accounts are prepared by the organization by following the compliance of various acts.

Shareholders, creditors and government agencies are considered as the external agencies which are interested to know about the accounting information.

Various agencies are interested to know about the accounts to ensure that organization is following the various laws applicable.

These regulatory agencies may includes Income Tax Authorities, Company Law Board, Registrar of Companies, SEBI, RBI etc.