a. The following are users of financial statements.
1. Customers.
2. Internal Revenue Service.
3. Labor unions.
4. Marketing manager.

6. Securities and Exchange Commission.

7. Store manager.

8. Suppliers.

9. Vice president of fi nance.

Instructions
Identify the users as being either external users or internal users.
b. The following questions could be asked by an internal user or an external user.
1. Can we afford to give our employees a pay raise?
2. Did the company earn a satisfactory income?
3. Do we need to borrow in the near future?
4. How does the company’s profitability compare to other companies?
5. What does it cost us to manufacture each unit produced?
6. Which product should we emphasize?
7. Will the company be able to pay its short-term debts?

Instructions
Identify each of the questions as being more likely asked by an internal user or an external user.