Question and answer
Discuss how the financial statements would be useful to internal users such as managers and employees.
Financial Statements are essential to professional financial reporting. The four basic financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flow. [ The balance sheet is used to present a picture of what a company owns and will also show the company’s overall liquidity. The balance sheet reports the amount of assets and claims to assets
for a period of time. Assets are items the company owns that could be used if needed to retain cash. The claims to assets are either creditor or owner, which shows up on the stockholders equity section. The creditor would be the individual or company that is using the asset as collateral to a debt. Once debt is paid the creditor releases asset back to owner. The income statement is used report the financial health of the company in a certain time frame. The income statement provides the revenues and expenses in the time frame. ]
Get an answer
Original conversation
User: Discuss how the financial statements would be useful to internal users such as managers and employees.

Weegy: Financial Statements are essential to professional financial reporting. The four basic financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flow. [ The balance sheet is used to present a picture of what a company owns and will also show the company’s overall liquidity. The balance sheet reports the amount of assets and claims to assets for a period of time. Assets are items the company owns that could be used if needed to retain cash. The claims to assets are either creditor or owner, which shows up on the stockholders equity section. The creditor would be the individual or company that is using the asset as collateral to a debt. Once debt is paid the creditor releases asset back to owner. The income statement is used report the financial health of the company in a certain time frame. The income statement provides the revenues and expenses in the time frame. ]
Expert answered|BRAINSTORM|Points 1098|

User: Discuss how the financial statements would be useful to external users such as investors and creditors?



Weegy: XTERNAL USERS OF ACCOUNTING INFORMATION What do we mean by external users and who are they? External users of accounting information are individuals and other enterprises that have a current or potential financial interest in the reporting [ enterprise, but that are not involved in the day-to-day operations of that enterprise. External users of financial information may include the following: Owners Creditors Potential investors Labor unions Governmental agencies Suppliers Customers Trade associations General public Each of these groups of external decision makers requires unique information to be able to make decisions about the reporting enterprise. For example, customers who purchase from the enterprise need information to allow them to assess the quality of the products they buy and the faithfulness of the enterprise in fulfilling warranty obligations. Governmental agencies such as the Federal Trade Commission may have an interest in whether the enterprise meets certain governmental regulations that apply. The general public may be interested in the extent to which the reporting enterprise is socially responsible (for example, does not pollute the environment). ]
Expert answered|BRAINSTORM|Points 1099|

Question
Asked 3/12/2012 9:40:20 AM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
17,893,769 questions answered
Popular Conversations
3x+3/18x= User: 10x+3/=
Weegy: this is quite simple, if you read over the question a few times and learn the tendencies. One number is ten ...
10/20/2014 5:27:08 PM| 5 Answers
Choose the product. -7p3(4p2 + 3p - 1)
Weegy: -7p3(4p2 3p - 1) = 7p3 - 84p6. Source: User: Find the quotient. 42j4k2 ÷ (-3j3k) Weegy: = 42j k /- 3j k) = ...
10/19/2014 5:43:50 PM| 3 Answers
Describe the key differences between managing and leading.
Weegy: ]
10/19/2014 5:51:01 PM| 3 Answers
Find the sum and choose the correct answer. 2n3 + 4n2 - 7 and -n3 + ...
Weegy: (2 n^3+4 n^2-7)+(-n^3+8 n-9) your answer is n^3+4 n^2+8 n-16 User: Select the correct difference. -3z7 - ...
10/19/2014 5:41:21 PM| 2 Answers
Weegy Stuff
S
L
1
1
1
1
L
1
L
Points 2160 [Total 14535]| Ratings 0| Comments 2160| Invitations 0|Offline
S
L
1
L
P
C
1
P
C
1
L
Points 1393 [Total 10874]| Ratings 3| Comments 1363| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 745 [Total 12974]| Ratings 0| Comments 745| Invitations 0|Offline
S
L
Points 457 [Total 1856]| Ratings 0| Comments 457| Invitations 0|Offline
S
1
L
L
Points 449 [Total 6243]| Ratings 3| Comments 419| Invitations 0|Online
S
Points 401 [Total 401]| Ratings 0| Comments 371| Invitations 3|Offline
S
Points 303 [Total 304]| Ratings 3| Comments 273| Invitations 0|Online
S
Points 186 [Total 186]| Ratings 1| Comments 176| Invitations 0|Offline
S
P
C
L
P
L
1
Points 48 [Total 6282]| Ratings 0| Comments 48| Invitations 0|Offline
S
Points 27 [Total 27]| Ratings 0| Comments 27| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.