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.
21,945,543 questions answered
Popular Conversations
Match the parts of the following function with their correct ...
Weegy: I'm sorry. What is your question? User: Which of the following equations could be used to solve for the ...
8/30/2015 8:34:24 PM| 4 Answers
Why is Paine's use of aphorisms important in The Crisis No. ...
Weegy: C User: Read the quotation from The Crisis, No. 1, and then answer the question. “…the harder the conflict, ...
8/30/2015 4:35:59 PM| 2 Answers
Select the adverb clause from the sentence below. As population ...
Weegy: Yes, adverbs can be used to modify other adverbs. User: Select the adverb clause from the sentence below. ...
8/30/2015 6:51:38 PM| 2 Answers
Select the adverb clause from the sentence below. Unless there is ...
Weegy: Adverbs do not modify NOUN. User: Select the adverb clause from the sentence below. Wherever there have ...
8/30/2015 7:01:02 PM| 2 Answers
By creating international and national commissions to oversee atomic ...
Weegy: c. expand the development and research of atomic plants User: This was a U.S. policy proposed by George Kennan ...
8/30/2015 7:35:08 PM| 2 Answers
2. Given the formula K = LMN, what is the formula for M? A. ...
Weegy: A. M = K/LN User: 3. Solve this equation for A: A ÷ 2 = 4 A. 8 B. 4 C. 6 D. 2 Weegy: -6 + 3x = -9 ...
8/30/2015 8:24:13 PM| 2 Answers
Weegy Stuff
S
P
C
L
P
L
1
P
P
1
P
1
P
L
P
R
Points 1342 [Total 11695]| Ratings 7| Comments 1272| Invitations 0|Online
S
1
L
L
Points 800 [Total 9268]| Ratings 3| Comments 760| Invitations 1|Offline
S
L
Points 798 [Total 1113]| Ratings 1| Comments 788| Invitations 0|Offline
S
L
L
P
1
Points 737 [Total 9310]| Ratings 2| Comments 717| Invitations 0|Offline
S
Points 541 [Total 767]| Ratings 1| Comments 531| Invitations 0|Offline
S
Points 258 [Total 266]| Ratings 0| Comments 258| Invitations 0|Offline
S
Points 224 [Total 224]| Ratings 3| Comments 194| Invitations 0|Offline
S
Points 214 [Total 533]| Ratings 1| Comments 204| Invitations 0|Offline
S
Points 202 [Total 279]| Ratings 0| Comments 202| Invitations 0|Offline
S
Points 144 [Total 175]| Ratings 0| Comments 144| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.