Financial Statements

grant1 · #1 Dec 27, 2006, 07:08 PM

Who are the internal and external users of a company's financial statements? For what purpose do they use this information?

CaptainForest · Dec 27, 2006, 08:27 PM

There are many users of a company’s financial statements:

Internal users could be managers or employees

External users could be creditors or investors.

Why do these (and many others) use the financial statements?

The reasons are different for each one.

For example, a creditor looks to see if they should a) lend money or b) see if the company is doing ok so they can pay them back.

An investor looks to see if the company is worth investing in.



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