ACCA Applied Knowledge · Business and Technology · Financial information provided by business
A retail company's finance team wants to use information that is gathered from outside the organisation, such as published industry statistics and competitor annual reports. How is this information best described?
This is an external source of information. Industry statistics and competitor reports originate outside the organisation, whereas internal sources come from the company's own records such as the ledgers, payroll or inventory systems.
- AInternal source of information
- BExternal source of informationCorrect
- CPrimary source generated by the company's own ledger
- DInformal source created from staff conversations
Explanation
Information obtained from outside the organisation, such as government statistics or competitor reports, is an external source. Internal sources come from the entity's own systems such as the ledgers and payroll. The ledger option is wrong because the data does not originate within the company.
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