Q17E - Horngren'S Financial And Managerial Accounting

Question

Identifying users of accounting information

For each of the users of accounting information, identify whether the user is an external decision maker (E) or an internal decision maker (I):

a. customer

b. company manager

c. Internal Revenue Service

d. lender

e. investor

f. controller

g. cost accountant

h. SEC

Step-by-Step Solution

Answer

The user of accounting information is shown as follows:

a	E
b	I
c	E
d	E
e	E
f	I
g	I
h	E

Step-by-Step-Solution Step 1: Explanation on Internal Decision Maker

Internal decision-makers are users who use the information given by managerial accountants. It includes managers, controllers, top management, cost accountant, etc.

Step 2: Explanation on External Decision Maker

External decision makers are users who use the information given by financial accountants. It includes customer, lender, SEC, Internal revenue service, investor, etc.