Answer
Among the potential users are lenders, owners, suppliers, management, potential investors and creditors, financial analysts, employees, directors, brokers, customers, advisers, underwriters, lawyers, stock exchanges, economists, legislators, taxing authorities, reporting agencies, regulatory authorities, labor unions, financial press and trade associations, business researchers, students, teachers and the public.
To employees, investors, suppliers, and lenders a business entity is a source of money in the form of interest or dividends, and information to be concerned with is affiliated with market prices, cost of goods or services, repayment of borrowing, and other expenses such as salaries or wages. To managers, they are responsible for business operations and would be concerned with information relating to cash flows and the general performance of the organization. To customers, the business is the source of goods or services, therefore; they would be concerned with information relating to the pricing of market offerings and the impact to society and the economy at large.
Work Step by Step
Investors, employees, creditors, managers, and customers share a common interest in an organizations' ability to generate favorable cash flow. Parties within the organization's environment are interested in the performance of an organization and may obtain this conclusion from business reports, both financial and non-financial.
