answersLogoWhite

0


Best Answer

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..

User Avatar

Wiki User

9y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

12y ago

Add your answer:

Earn +20 pts
Q: Who is an internal user of financial statements?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is misstate?

In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.


What is material misstatement?

In financial statements a misstatement is a material misstatement if a user of the financial statements who places reliance on that information reaches at a wrong conclusion.


What is the meaning of financial statement level risk?

Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.


What are internal controls in accounting?

Internal controls in accounting are systems set in place to regulate the financial process. This ensures valid financial statements and allows businesses to track progress on their financial goals.


Identify user groups of financial statements and explain what information they are likely to want from them?

One user group for financial statements is external investors. They use the documents to determine whether the business is profitable. Internally, managers look at financial documents to determine whether their department is profitable.


Who are the four non-management user groups those in need of information that is in the financial statements?

good


What are the differences between internal financial statement and published financial statement?

Internal financial statements and pbulished financial statements of a company are different in the following ways: 1. Terminologies - For example, for internal accounts, we use sales, but for publised accounts, we use turnover. 2. Details - In internal income statements, we list down all the expenses, but under published income statements, expenses are grouped tinto administration and distribution. 3. Format - Publised financial statement must follow a straight format according to FRS 101 and Bursa Malaysia Listing Requirements. 4. Disclosure - Need to disclose the following under published accounts, (1) significant accounting policies (2) financial cost (3) earning per share (4) related party transaction (5) income tax expenses, etc The above disclosures are not required under internal financial statements.


What is an external auditors report?

external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)


Why do most companies adhere to GAAP for their basic internal financial statements?

Accural accounting provides a uniform method to measure an organization's financial performance.


How might changing one of the financial statements affect the other financial statements?

How might changing one of the financial statements affect the other financial statements?


What are limitations of financial management?

Financial Statements Are Derived from Historical Costs. ... Financial Statements Are Not Adjusted for Inflation. ... Financial Statements Do Not Contain Some Intangible Assets. ... Financial Statements Only Cover a Specific Period of Time. ... Financial Statements May Not Be Comparable. ... Financial Statements Could be Wrong Du


Objectives of an internal control system?

An internal control system aides in ensuring financial statements are free from material misrepresentation and assets are sufficiently protected from misappropriation.