Internal users would be managers so that they can make decisions about how to manage and also see how effectively they have managed. External users would be potential investors, the Government, lenders, the public, unions...
Why are financial statement users interested in the statement of cash flows?
it enable both internal and external to know that the company worth, the company is heading for losses. ...
What is the difference between internal and external factors?
In any Company there are Internal Factors affecting the company and External Factors affecting the company. Internal Factors are Management Descisions on what sort of business the company is in, quality of services or stock sold by the company. External Factors affecting the company include the Global Financial Crisis, government policies, and central bank interest rates. ...
What is the purpose of the reports required by Section 404 of the Sarbanes-Oxley Act?
"The Company must report on internal controls over its financial reporting. Four key elements must be included in this report: Statement of Responsibility by Company Management (the CEO and CFO) for establishing and maintaining an adequate internal control structure and procedures for financial reporting. Statement identifying the framework used by management to evaluate the effectiveness of the Company's internal control over financial reporting Management's Assessment of the effectiveness of Internal Controls over financial reporting Attestation by the company's external auditor on Management's assessment of the effectiveness...
Asked in The Difference Between
What do you mean by internal and external liability of the company?
internal liability mean that company will pay salary, so salary is internal liability, and the company will pay interest to bank it is external liability. ...
Asked in Business Accounting and Bookkeeping, Financial Statements, Bachelor of Business Administration (BBA)
Is company management an external user of financial information?
no it is an internal user of information.External users are financial analysts outside the company, lenders and creditors such as banks and suppliers, and groups such as environmentalism groups and govermental bodies. ...
Asked in Business Accounting and Bookkeeping, International Business and Trade, Management and Supervision
Difference between financial and cost accounting?
Financial accounting is used for external financial reporting purpose only while cost accounting is used for internal decision making and management in company. ...
Why company prepare financial statement?
financial statement is the most important for a company .financial statement is made by the company to adjust the record ,know the profit and loss and to balance the balance sheet.it is the prof that company is going in profit or loss ...
What are the difference between th consolidated financial statement and the normal financial statement?
Where there is a relationship of parent company and child company exists between companies then to show the overall performance of parent as well as child companies at one single financial statement is called consolidated financial statement while on other hand financial statement of one single company is called the normal financial statement. ...
A combined financial statement of a parent company and its subsidiaries is called?
a consolidated financial statement
Asked in Sales and Customer Service
Distinguish between internal and external reconstruction of a company?
internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction. ...
What the difference between a comparative statement and consolidated statement?
Comparative financial statements compares one set of financial statement with another set of financial statements while consolidated financial statement is prepared where in company there is parent and child company relationship exists to join the financial statements of parent and child company as a single financial statements. ...
What is the difference between internal and external customer service?
internal customers are the people you service within your company, external customers and the people that do business with your company ...
Why audit is conducted?
there are two types of audit, external and internal. Internal audit is necessary in any business enterprise in order to determine adherence to company policies and determine losses due to irrregularities by employees. External audit is likewise mandated for the final presentation of the financial condition and statement of earnings by the company for a certain particular period, either a calendar or fiscal year as mandated also by government regulatory agencies of a country. ...
Asked in Tax Audits, Financial Statements
What are two differences between an internal audit and an external audit?
1) An internal audit is an appraisal of activities within company areas, whereas an external audit looks at the financial statements as a whole 2) An internal report is normally given to managers, while an external report is prepared for shareholders, related companies, creditors, or government agencies. ...
What is the difference between internal and external financing?
External financing is when a department helps another department meet their production numbers. External financing is when some entity external to the company helps the company meets their financial obligations. For a more definitive example, a corporation has the ability to sell shares of its own stock to current stockholders or to the public in general. This is money transfered into the company using its own internal finances. If the same corporation decides to sell bonds on the open market, that is...
Asked in Business Accounting and Bookkeeping
Are Bondholders the internal users of company's accounting information?
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. ...
Asked in Business Accounting and Bookkeeping
Who are the users of financial information that are focused on the business ability to meet their financial obligation?
the internal and external users are the persons who uses the financial information , either they are directly related to the company or indirectly to their use, they are basically shareholders, debentureholders,creditors, employees and the government, financial institutions and other organisation to evaluate the status of the company. ...
Describe a balance sheet income statement retained earnings statement and statement of cash flows How does a company use these financial sta?
To check on the financial position of the company eg: payables and receiveables ...
What are the benefits of financial statement analysis?
we can get the information about "financial position of a particular company ...
Asked in Macroeconomics
What is internal and external environment in macroeconomics?
They refer to who is holding power in buying situations. External are circumstances a company can't control such as people's preferences, demand whereas internal are the people in the company. ...