Final answer:
An employee is generally an internal user, not an external user, of a business's financial information. Customers, taxing authorities, and investors are considered external users who need access to this information for various reasons such as assessing the company's financial stability, tax compliance, and investment potential.
Step-by-step explanation:
The question asks which of the following is not an external user of a business's financial information. The options are A. Employee, B. Customers, C. Taxing authorities, D. Investors. An external user is someone who does not participate in the day-to-day management of a business but needs access to its financial information. To determine the answer, let's consider each option.
Employees are generally considered internal users because they are part of the company and often have access to more detailed internal information. Customers, taxing authorities, and investors are all typical external users. Customers may be interested in a company's financial stability before entering into long-term contracts. Taxing authorities require financial data to assess tax liabilities. Investors and providers of capital, such as bondholders and shareholders, analyze financial data to make investment decisions.
From the given options, the correct answer is A. Employee because an employee is typically an internal user rather than an external user of financial information.