External Users of Accounting Information, Like the Internal Revenue Service

question 149

Multiple Choice

External users of accounting information, like the Internal Revenue Service, are most commonly known as

• A)taxing authorities.
• B)labor unions.
• C)customers.
• D)regulatory agencies.

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Definitions:

Corporate Records

Official documents that corporations are legally required to maintain, including information on business activities, financial performance, and legal obligations.

Declared Dividend

A dividend that has been announced by a company's board of directors to be paid out to shareholders on a specified date.

Duty of Diligence

The obligation to perform tasks, responsibilities, or research with careful and persistent effort to avoid harm to another party.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or sensitive information.