M3-TECHNICAL

MODULE 3: USERS OF ACCOUNTING INFORMATION

ANSWER THE FOLLOWING QUESTONS:

1. Give at least 3 internal users of accounting information.

 Owners – Those who know the financial status of the business.

 Management – Set the goals and evaluates the organization.
 Employees – Those who assess the ability of the enterprise to provide benefits for the
employee.

2. Give at least 3 external users of accounting information.

 Government Regulation Agencies – Ensures a company’s disclosure of information is legal.

 Creditors – Assess credit worthiness of borrowers.
 Auditors – Those who examines FS in order to form an audit opinion.

3. Differentiate internal users from external users of accounting information.

External Users are those who determines and assess accounting information from the
outside of the organization, this can be from the government or other agencies that may be
helping or is somehow involved with the organization’s accounting process. On the other
hand, internal users are the employees or those that handles and/or assess the accounting
information from within the organization itself, these are not just employees, this could also be
the managers or owner itself.