Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements. Accounting information is useful for the users because it provides the summarized and analytical reports at one place which helps the users to fulfill their objectives. The groups that create demand for the financial information are explained as follows: Lender or creditors Owners Investors Government Employees The information provided by each type of financial statement and their use for different users.

BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter 1, Problem 75.3C
To determine

Concept Introduction:

Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.

Accounting information is useful for the users because it provides the summarized and analytical reports at one place which helps the users to fulfill their objectives. The groups that create demand for the financial information are explained as follows:

  • Lender or creditors
  • Owners
  • Investors
  • Government
  • Employees

The information provided by each type of financial statement and their use for different users.

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