Which of the Following Statements Is True Concerning External Users

question 75

Multiple Choice

Which of the following statements is true concerning external users of financial information?

• A)External users need detailed records of the business to make informed decisions.
• B)External users are primarily responsible for the preparation of financial statements.
• C)External users rely on the financial statements to help make informed decisions.
• D)External users rely on management to tell them whether the company is a good investment.

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Definitions:

Used An Analogy

The process of explaining a concept or idea by likening it to a more familiar or simpler concept for better understanding.

Support System

A network of individuals or resources that provide assistance, comfort, and guidance.

Used An Analogy

Employing a comparison between two different things for the purpose of explanation or clarification.

Mental Set

A habitual strategy or pattern of approach to problem-solving that is based on past experiences and successes.