Q.Who are the external users of information?

Employees are internal users of accounting information; customers, creditors and government are external users.

Users of accounting information are grouped as:

• Internal users — those inside the business: owners/proprietors, management and employees (interested in job security, wages, bonus and the firm's stability).
• External users — those outside the business: creditors and lenders, customers, government and tax authorities, investors, and researchers. …

Internal users of accounting information are those inside the business — owners, management and employees.

Users of accounting information are divided into internal users (those within the organisation — owners, who want to know the profitability and financial position; management, who use it for planning, control and decision-making; and employees, who are interested in job security and bonus/wage prospects) and external users (lende …

External users are parties outside the organisation who use its published accounting information.

External users include banks and other lenders (to assess creditworthiness before lending), investors and potential investors (to judge whether to invest), creditors and suppliers (to decide on credit terms), government and tax authorities (for taxation and regulation), customers (especially for long-term contracts and warranties), and researchers/the general public. Unlike internal users (owners, management, employees), external users rely onl …