ACTIVITY 4

1. Differentiate external and internal users. Give examples.

 Internal users are more like that direct users of the financial information of the business
while external users act as the secondary receiver. For example, in for internal users in a
business managerial personnel use the financial information to further improve the state of
the business wherein external users such as banks or future investors will use the financial
information whether for the investor to invest or for the bank to trust the company.
2. Compare the general and specific needs of accounting information.
 The general purpose accounting information will give the common information and it is also
a more brief explanation, it caters the general “to-know” about the business while in the
specific accounting information it caters to what a particular statement users needs and that
is why it is more detailed in the part that the particular business user is trying to know more
about.