Solution:- External users of accounting information is given below:-
Potential Investors:- Investment of money in a business enterprise involves risk. Hence those who want to invest money in a business enterprise need information about to company financial position which can obtain by accounting information.
Creditors:- Creditors are the persons who supply goods or services on credit. Before granting credit, creditors want to be satisfied about the creditworthiness of the business enterprise.
Lenders:- In modern times, banks and financial institutions lend money to the business. Before providing a loan to a business they want to judge the repaying capacity of the business.
Employees:- Employees need information about the profits of a business to assess the ability of the business to pay higher wages and bonuses.
Government:- The government is interested in the financial statements of a business on account of assessment of income tax, sales tax excise duty etc.