Examples of internal users are owners, managers, and employees. 

Internal Users of Financial Statements

Internal users of financial statements refer to individuals or groups within an organization who use financial information for decision-making purposes. These users have direct access to the financial statements of the company and use them to assess the financial health and performance of the organization. In the given options, the correct answer is option 'D' - Employees. Let's understand why employees are considered internal users of financial statements.

Employees as Internal Users:
Employees are an important internal user group as they have a vested interest in the financial well-being of the organization they work for. They rely on financial statements to understand the financial position of the company and its ability to provide job security, compensation, benefits, and growth opportunities. Here are some reasons why employees use financial statements:

1. Compensation and Benefits: Employees use financial statements to assess the company's financial performance, profitability, and cash flow. This information helps them understand if the organization is financially stable and capable of providing regular salaries, bonuses, and other benefits.

2. Job Security: By analyzing the financial statements, employees can evaluate the organization's ability to generate revenue and sustain profitability. A financially stable company is less likely to downsize or lay off employees, providing a sense of job security.

3. Employee Stock Ownership Plans (ESOPs): In companies where employees have ownership through ESOPs, financial statements help them track the value of their shares and assess the company's performance.

4. Career Development: Financial statements provide insights into the financial health of the organization, its growth prospects, and investment in employee development. Employees can use this information to make decisions regarding career advancement and training opportunities.

5. Understanding Corporate Strategy: Financial statements disclose information about the company's strategic initiatives, such as mergers, acquisitions, or expansions. Employees can analyze these statements to understand the direction and goals of the organization, align their efforts accordingly, and contribute to the company's success.

Conclusion:
While government, investors, and creditors are also important users of financial statements, employees are considered internal users due to their direct association with the organization. Employees rely on financial statements to assess job security, compensation, benefits, career development opportunities, and to understand the corporate strategy of the company they work for.