Final answer:
External users of accounting information are not involved in the daily operations of a firm but have a financial interest in its performance, relying on financial data to make investment decisions.
Step-by-step explanation:
The statement is true; external users of accounting information do have a financial interest in an entity but are not involved in the day-to-day operations of the enterprise. External users, such as bondholders and shareholders, invest their financial resources in a firm with the expectation of earning a return on their investment. As a firm becomes established and its future profitability seems likely, these external investors depend less on personal contact with managers and more on publicly available financial information—like data on the company's products, revenues, costs, and profits—to make informed decisions about where to allocate their capital.