External Users:
1 - Potential Investors
2 - Banks
3 - Financial Institutions
4 - Governament
5 - Creditors
6 - Suppliers
Internal Users
1 - Employees
2 - Management
3 - Share holders etc
Generally bondholders would be external users of financial information. Prudent investors would most likely look over a company's external financial statements and disclosures before purchasing bonds from the company.
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
the objective is to evaluate and report a company's fianancial performance fairly and correctly and provide useful imformation for internal and external users for decision making.
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
it enable both internal and external to know that the company worth, the company is heading for losses.
Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..
If you mean differences in internal and external users of financial statements, then the answer is as follows: Internal users are persons employed by the organization such as management (e.g. CFO, CEO); internal users also encompasses owners and board members of the entity. External users are those not employed by the organization such as potential investors or creditors; external users also do not include persons presently with ownership in the business nor board members of the entity.
Generally bondholders would be external users of financial information. Prudent investors would most likely look over a company's external financial statements and disclosures before purchasing bonds from the company.
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
the objective is to evaluate and report a company's fianancial performance fairly and correctly and provide useful imformation for internal and external users for decision making.
What level of knowledge should users of financial statements have?
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
Who are users of financial statements
internal users
Internal users of information are those business units within the organization. While, external users of information are those business linkages (outside) of the organization.
internal users are those who identify the raw material for producing a useful product because internal customers are people who provide service to the external customers.
it enable both internal and external to know that the company worth, the company is heading for losses.