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In the accounting section we looked at the difference between managerial accounting , which is intended for internal users and financial accounting , which is

In the accounting section we looked at the difference between managerial accounting, which is intended for internal users and financial accounting, which is intended for external users. It is important that we understand our audience so that we present the information in a way that can be understood by the user. Think about a story, TV show, movie, sports event, etc. where information was communicated to the wrong users. What was the result?

As an example of something communicated to external users that should have been kept internal, consider the children's fable Chicken Little. This hysterical chicken was supposed to tell the king the sky was falling. The king is an internal user of information in the kingdom. But instead, Chicken Little told everyone the sky was falling; consequently, the whole kingdom was in a panic. Also, Chicken Little looked a little silly when the king told her the sky wasn't falling. She should have been more careful about how and to whom she communicated her information.

As an example of something communicated to internal users that should have been communicated to external users, consider Snow White. When this beautiful princess ate the poison apple, the seven dwarfs could have communicated her plight all over the world, which could have led to princes lining up to assist her. Instead, the dwarfs kept the information to themselves -- Snow White was fortunate that a charming fellow showed up to help.


  1. Provide an example of information that should have been communicated to external users but instead was communicated to internal users.

  2. Next, provide an example of information that was communicated to internal users but should have been communicated to external users.

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