Final answer:
The information system concerned with external user outputs is financial accounting. It entails providing financial statements that reflect a company's financial status to investors, creditors, and regulatory bodies, as opposed to managerial accounting, which serves internal decision-making.
Step-by-step explanation:
The information system that is concerned with producing outputs for external users is financial accounting. Financial accounting is designed to provide information in the form of financial statements (income statement, balance sheet, and cash flow statement) that reflect the performance and financial position of a company to external parties such as investors, creditors, tax authorities, and regulators. This contrasts with managerial or operational accounting, which focuses on internal decision-making processes.
The main purpose of financial accounting is to provide useful financial information to users who are not involved in the day-to-day operations of the business. Key elements include ensuring that financial records conform to generally accepted accounting principles (GAAP) and presenting a fair and accurate view of a company's financial health.
Another system, forensic accounting, deals with the investigation of fraud or financial manipulation and is generally used in legal contexts rather than for regularly reporting financial health to external users. Therefore, the correct answer to the student's question is c. financial accounting.