Q20
In financial accounting, investors, banks, suppliers and government agencies are classified as
A.
external parties
AnswerB.
internal parties
C.
environmental parties
D.
transactional parties
Answer: Option A
Solution
Answer: Option A
Solution:
In financial accounting, investors, banks, suppliers and government agencies are classified as external parties. An external party can be an individual or organization that is a legal entity. If the external party is an individual, the individual may or may not be a contact for an organization.