posted by Sherill on Apr 14
www.adashunfinancialservices.com
Managers and stockholders need accounting knowledge to analyze how their business is performing. Accountants prepare the company’s financial report showing how well it did in the past and of course, how well will it do in the future.
There are people outside the business who also study these financial reports. They are called the creditors and investors. Creditors are companies that lend money to businesses for short or long term needs. Their concern is to study the financial well-being of the company to ensure that they will be paid on time. While investors are people who are a part of the ownership of the business who needs financial statements to decide whether they will continue to invest in the company.