Internal Users
- known as primary users.
- it refers to the management.
Example:
1. Owners
- naturally interested in what's happening to the business.
2. Employees
- interested to know the stability and profitability of the business so they can look for another company when necessary.
- interested also if the business can afford an increase in their salaries and other fringe benefits.
External Users
- known as secondary users.
- who have financial claim of interest in the business.
Example:
1. Prospective investors
- want to know whether it is worthwhile investing in the business.\
2. Suppliers and Creditors
- want to know the risk they are taking when they give credit terms to the business.
3. Lending institutions
- want to know whether or not to grant loan to the business or whether the business can pay its outstanding loan.
4. Customers
- interested in the stability of the business, which is the supplier of their needs.
5. Government
- interested to know whether the business is paying the correct taxes or is complying with all the government requirements.
6. General public
- public may be interested in the affairs of the business for their own personal and varied reasons.
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Accounting for Sole Proprietorship (reviewer)
Non-FictionThis is my reviewer and I wanted to share it with you. I tried my best for y'all to understand it. Hope you'll find this helpful for your study! "Balang araw masasabihin din nating, CPA na ako" - Nevest Love you all ABM and BSA students.
