2 Users of Financial Information are:

• A. Internal Users
• B. Internal Users and External Users
• C. External Users
• D. Stakeholders

Answer: (B)

Two main groups use financial information: internal users and external users. Internal users, like managers and employees, rely on the data to plan, control operations, budget, and make strategic decisions. External users, such as investors, creditors, regulators, and other outside parties, depend on the statements to evaluate performance, assess risk, and decide whether to invest, lend, or engage in business with the company. While stakeholders is a broader term that can include both groups, the typical classification in financial reporting focuses on internal versus external users. This is why the option that includes both internal and external users best fits the concept.