ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following is an example of an internal source of financial information for a manufacturing company?
The company's inventory records and payroll system are internal sources, because they are generated within the organisation. Central bank announcements, competitor reports and trade association surveys all come from outside and are external sources.
- AA central bank's published interest rate announcement
- BA competitor's published annual report
- CThe company's inventory records and payroll systemCorrect
- DA trade association's industry survey
Explanation
Internal sources are generated within the organisation, such as inventory records, payroll, and the accounting ledgers. The other options all originate outside the company and so are external sources.
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