Ask Experts Questions for FREE Help !
Ask
    grant1's Avatar
    grant1 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 27, 2006, 08:08 PM
    Financial Statements
    Who are the internal and external users of a company's financial statements? For what purpose do they use this information?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Dec 27, 2006, 09:27 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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Financial statements [ 1 Answers ]

Given this info, I have to prepare the 4 financial statements, income statement, statement of cash flows, balance sheet, and statement of stock holders equity. XYZ started a business contributing $6000, they borrowed $2000 from the bank on March !st, the note is a year, 12% note, principal and...

Financial statements [ 1 Answers ]

Who are the internal and external users of a company's financial statements?

Financial Statements [ 1 Answers ]

List accounts in Classified Balance Sheet, Retained Earnings and Income Statement. Show Examples Please

Financial statements [ 1 Answers ]

Selected amounts from H&B co. info system appear as follows: Cash paid employees for salaries and wages=300,000 Cash collocted from sales customers=1,850,000 Bonds payable=500,000 Cash=150,000 Common stock=60,000 Equipment=840,000 Prepaid insurance=30,000 Inventory=250,000 Prepaid...

Financial statements [ 4 Answers ]

I'm a principal owner and director of my company. Every once in a while the accountant gives me the financial statement. I have no idea how to interpret this. On the cover there is an index with 12 pages and 3 schedules. I believe the only important one is page 1, the balance sheet. ...

View more questions Search