The following are users of financial statements.
Instructions
(a) Identify the users as being either external users or internal users.
External users Customers
External users Internal Revenue Service
External users Labor Unions
Internal users Marketing Manager
Internal users Production Supervisor
External users Securities and Exchange Commission
Internal users Store Manager
External users Suppliers
Internal users Vice-president of Finance
(b) The following questions could be asked by an internal user or an external user.
Identify each of the questions as being more likely asked by an internal user or an external
user.
Internal users Can we afford to give our employees a pay raise?
External users Did the company earn a satisfactory income?
Internal users Do we need to borrow in the near future?
External users How does the company's profitability compare to other companies?
Internal users What does it cost us to manufacture each unit produced?
Internal users Which product should we emphasize?
External users Will the company be able to pay its short-term debts?
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