Which of the following is an external user of a business’s financial information? A) customers B) cost accountant C) company manager D) the board of directors ANSWER A
Accounting is referred to as the language of business because it is the method of communicating business information to decision makers. Indicate whether the statement is true or false ANSWER TRUE
Managerial accounting focuses on information for external decision makers. Indicate whether the statement is true or false ANSWER FALSE
A creditor is a person who owes money to the business. Indicate whether the statement is true or false ANSWER FALSE
Stockholders primarily use managerial accounting information for decision-making purposes. Indicate whether the statement is true or false ANSWER FALSE
Financial accounting focuses on information for decision makers outside of the business, such as creditors and taxing authorities. Indicate whether the statement is true or false ANSWER TRUE