3.13: Introduction to Users of Accounting
What you’ll learn to do: Discuss the financial consequences of various organizational structures
Accounting information allows individuals to understand the financial health and stability of a business. Companies typically share their accounting information via financial statements, which helps users measure performance and make better financial decisions. Several types of people utilize financial statements, but they generally fall into two major categories: internal users and external users.
In this section, you’ll learn to outline the needs and roles of various users, differentiate between the major organizational structures, describe the effects of different forms of doing business, and summarize information in an annual report.