The External and Internal Users of Financial Information L1 Flashcards
1
Q
They analyze financial statements to determine the profitability and growth potential of their investments.
A
Investors
2
Q
group includes banks and other lenders who evaluate a company’s ability to repay loans.
A
Creditors
3
Q
These are people who rely on its products or services.
A
Customers
4
Q
individuals within the organization who utilize financial information for operational decision-making.
A
Internal users
5
Q
Managers rely on detailed financial reports to make day-to-day operational decisions
A
Management
6
Q
need comprehensive insights into the company’s performance to guide their investment decisions
A
Owners
7
Q
not always directly involved in high-level decision-making
A
Employees
