Which one of the following is an internal user of financial information?a. Companymanagementb.Governmentsc.Investorsd.Creditors Show
Which of the following invests funds into a business and is considered an owner? Get answer to your question and much more Which one of the following is not one of the three business activities? Get answer to your question and much more Which one of the following financial statements reports an entity's financial position at a specific date? Get answer to your question and much more Which of the following terms best describes a distribution of the net income of a corporation to its owners?a.Dividendsb. Liquidation ofassetsc. Monetary If you want to know how a business is performing, financial statements provide the answer. Is there enough cash in the bank to pay the bills? Is the company making money? Have the assets been swallowed up by debt? The users of financial statements such as the balance sheet include people both inside and outside your company. Meet the StatementsBecause so many people rely on financial statements for information, federal regulation, and generally accepted accounting principles (GAAP) have standardized the formats. One big difference between internal and external users' statements is that financial statements for external use must fit these standard formats. If internal users such as your company's management or owners want information, you can use any format that works for them, or you. The essential financial statements are:
Internal Users of Financial StatementsInternal users of financial statements fall into three main groups: management, owners and, sometimes, employees. In many small businesses, the owners are the managers. The key users of financial information in a partnership, for instance, are usually the partners themselves.
Because those in management have to make decisions for the business, they need different information than other internal users of financial statements. For example, they may want income statements for each product line or store rather than for the business as a whole. External User StatementsIf someone wants to know about your finances but isn't part of your business, they're external users of financial statements. They fall into many more categories than internal users of financial statements:
External users' statements have to follow GAAP or similar accounting frameworks. That doesn't mean they all want the same information. Investors may be most interested in your financial performance, while lenders might focus on your current debt load.Who are the internal users of financial statements?Internal users of financial statements fall into three main groups: management, owners and, sometimes, employees.
Which on of the following groups is considered an internal user of financial statements?Here, the factory manager is the person who works within the organization and is responsible for monitoring the activities of workers; he's considered an internal user of the financial statements.
Which one of the following groups is considered an internal user of financial statements quizlet?Which one of the following groups is considered an internal user of financial statements? Managers of the company that supervise production workers.
What are the 3 internal users of accounting?Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information.
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