Describe how some of the primary groups of users use financial statements.
How some of the primary groups of users use financial statements.
Accounting information tells us a numerical story of what is exactly going in the going. This information is required by almost every person either associated with the business or the one who wants to get associated with the business.
Users of Financial statements are all those who make use of the accounting information disclosed by the company.
There are 2 types of users of financial statements namely:
Example
Internal users: Employees, Owners, Management etc
External users: Investors, Suppliers, Lenders, Customers, Government and general Public.
All these are regarded as the primary users of financial statements.
Internal users like management make the use of the data to access the performance of employees and to access how efficiently the policies and plans have worked. If the plans have not worked as per standards then they can take corrective actions.
It helps them to make budgets, to access and define the costs etc.
External users like investors access the information to see whether the company is doing good and whether it would be fruitful to invest in this business.
Government uses this information to see whether the business is performing according to the law and to take taxes accordingly.
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Get SolutionsCorporate Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals of Financial Management (MindTap Course List)
Foundations of Business (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Probability and Statistics for Engineering and the Sciences
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Financial And Managerial Accounting
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
A Guide to SQL
Principles of Information Security (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Electric Motor Control
Solid Waste Engineering
EBK ELECTRICAL WIRING RESIDENTIAL
Principles of Geotechnical Engineering (MindTap Course List)
International Edition---engineering Mechanics: Statics, 4th Edition
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Steel Design (Activate Learning with these NEW titles from Engineering!)
Automotive Technology
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Structural Analysis
Network+ Guide to Networks (MindTap Course List)
Corporate Financial Accounting
College Accounting (Book Only): A Career Approach
Survey of Accounting (Accounting I)
Accounting Information Systems
College Accounting, Chapters 1-27
Managerial Accounting
Cornerstones of Cost Management (Cornerstones Series)
Intermediate Accounting: Reporting And Analysis
Financial Accounting
Accounting (Text Only)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial Accounting
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Economics (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
Management, Loose-Leaf Version
Fundamentals of Financial Management (MindTap Course List)
ECON MACRO
Microeconomics
MKTG 12:STUDENT ED.-TEXT
MACROECONOMICS FOR TODAY
Economics For Today
Exploring Economics
Principles of Macroeconomics (MindTap Course List)
Understanding Management (MindTap Course List)
Contemporary Marketing
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Micro Economics For Today
Pkg Acc Infor Systems MS VISIO CD
Macroeconomics
Macroeconomics: Private and Public Choice (MindTap Course List)
Purchasing and Supply Chain Management
Essentials of Economics (MindTap Course List)
Principles of Microeconomics
Practical Management Science
Microeconomics: Private and Public Choice (MindTap Course List)