Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

Who are the parties interested in the financial statements?

stakeholders
Parties interested in the analysis of financial statements are known as stakeholders. The stakeholders are management, shareholders and bankers and lenders etc.

Who are the users of a financial statement?

Suppliers like the customers would like to deal with companies that have good financial health. Thus, they are also users of financial statements and make decisions to provide credit to the company.

How are financial statements used in the real world?

The financial statements are used to analyze the financial position of the company i.e. the company’s ability to stand in the market and it’s earning potential. The companies are required to publish their financial statements with full disclosure that are useful for such users. This is a guide to Users of Financial Statements.

Why is the government interested in financial statements?

One of the main features of company form of organisation is that there is distinction between providers of capital and those entrusted with the actual operation and the management of the business. Just to safeguard the interest of former class, the government is interested in the financial statements. User # 7.

Why do customers need to see financial statements?

Customers need to view the financial statements of the company from which they are procuring goods or services. Big clients would like to have a long-term partnership or contract with the company; thus, they would like to work with a company that is financially stable.