Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Who among the following is a primary user of financial information?

General public
Managers of the company
Potential customers
Non-profit organizations

The correct answer is: Managers of the company

Financial information is primarily used by managers of a company as they need access to detailed financial data to make informed decisions regarding the operations, planning, and strategic direction of the organization. Managers use financial statements and reports to assess the company's performance, allocate resources efficiently, manage budgets, and evaluate profitability and financial health. In contrast, while the general public, potential customers, and non-profit organizations may utilize financial information for various purposes, their needs are secondary to the requirements of internal managers. The general public often seeks broader insights from financial data, potential customers may look for information about a company's stability, and non-profit organizations might be interested in financial reports primarily for transparency and accountability. However, the direct, day-to-day management of financial resources clearly falls to the managers, making them the primary users of this information.