External users of financial information: Multiple Choice Are those individuals involved in managing and operating the company. Are not directly involved in operating the company. Make operating decisions for a company. Include internal auditors and managers.

Answer: External users of financial information are not involved directly in the operations of the company.

Explanation:

Financial accounting, is an accounting field that focuses on the gathering and compilation of data to present to external users in form that is usable to them. The main purpose of financial accounting is to give vital financial information to external users. The external users are individuals outside the company.

The external users of the financial information are not involved directly in the functioning and operations of the organization because they are outsiders and only have few information about the operations of the organization.

Are not directly involved in operating the company.

Explanation:

External users of financial information includes government, creditors and lenders, customers, suppliers etc. These are stakeholders not involved in how the organization runs but are affected in one way or the other by decisions taken by the owners and management of the business.

For instances, government uses the financial information to estimate the amount of tax to be paid be an entity, customers are concerned about the company's ability to continue to meet demands based on the company's performance as contained in the financial information.

Supplies and lenders use financial information to as assess the ability of the company to pay debts and credits.