The correct answer is C. Creditor of the business.
An external user of financial statements is someone who is not directly involved in the day-to-day operations of the business, but who has an interest in its financial performance. This includes creditors, investors, and government regulators.
Creditors are individuals or organizations that have lent money to the business. They use financial statements to assess the business’s ability to repay its debts.
Investors are individuals or organizations that have purchased shares in the business. They use financial statements to assess the business’s profitability and potential for growth.
Government regulators use financial statements to ensure that businesses are complying with laws and regulations.
Managers and CEOs are internal users of financial statements. They use financial statements to make decisions about the day-to-day operations of the business.
Controllers are employees of the business who are responsible for preparing financial statements. They are not considered to be external users of financial statements.