Question

Match the following external users of accounting information:

1) Investors
2) Creditors
3) Government
4) Employees

Answer 1

Investors, creditors, government, and employees are the external users of accounting information.

Step-by-step explanation:

The four external users of accounting information are:

1. Investors: Investors provide financial capital to the business by buying stock or investing in the business. They are interested in the financial performance and future prospects of the business.
2. Creditors: Creditors lend money to the business, either through bank loans or bonds. They are interested in the business's ability to repay the borrowed funds.
3. Government: The government uses accounting information for taxation purposes and to ensure compliance with regulations.
4. Employees: Employees may use accounting information to evaluate their own performance and to understand the financial stability of the business.