Question

Question: Part A. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user of accounting information. 1. What are reasonable payroll benefits and wages? 2. Should we make a five-year loan to that business? 3. What are the costs of our product’s ingredients? 4. Do income levels justify the current stock price? 5. Should we spend additional money for redesign of our product? 6. Which firm reports the highest sales and income? 7. What are the costs of our service to customers?

Part B. Identify the following users of accounting information as either an internal (I) or an external (E) user. 1. Research and development director 2. Human resources director 3. Politician 4. Shareholder 5. Distribution manager 6. Creditor 7. Production supervisor 8. Purchasing manager

Short answer

Part A and part B matching is done below:

Step-by-step solution

Part A

Accounting information	Internal or External
1.	Internal (I)
2.	External (E)
3.	Internal (I)
4.	External (E)
5.	Internal (I)
6.	External (E)
7.	Internal (I)

Part B

Users	Internal or External
1.	Internal (I)
2.	Internal (I)
3.	External (E)
4.	External (E)
5.	Internal (I)
6.	External (E)
7.	Internal (I)
8.	Internal (I)