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Identify at least three external users of accounting information and indicate two questions they might seek to answer through thier accounting information

Certainly! In general, external users refer to individuals or entities who are not directly involved in the day-to-day operations of a business, but rely on accounting information to make economic decisions. Here are three examples of external users of accounting information along with two questions they might seek to answer:

1. Investors/Shareholders:
- Question 1: What is the financial position of the company? Investors may want to evaluate a company's financial health and determine if it is a good investment opportunity.
- Question 2: How profitable is the company? Investors may be interested in assessing the company's profitability to estimate potential returns on their investment.

2. Lenders/Banks:
- Question 1: What is the company's debt-to-equity ratio? Lenders may use this information to assess the company's ability to repay loans and manage its financial obligations.
- Question 2: What is the company's cash flow statement? Lenders often review cash flow statements to understand the company's ability to generate sufficient cash to cover its expenses and debt payments.

3. Government/Regulatory Authorities:
- Question 1: Is the company complying with tax regulations? Government authorities may use accounting information to assess the accuracy of tax reporting and ensure compliance with tax laws.
- Question 2: Is the company paying fair wages and providing adequate benefits? Regulatory bodies may examine financial statements to determine if a company is adhering to labor laws and providing appropriate compensation to its employees.

To find additional examples of external users of accounting information, you can refer to accounting textbooks, online resources, or consult with professionals in the accounting field.