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Which entities (Internal & External) are interested in the business?

(Several examples)



To use financial information given to make good decisions for the business



To find out how well the business is doing financially, and whether additional capital has to be injected



To evaluate whether to continue working, given the financial position of the business



To decide whether to purchase from the business by comparing prices, quality and reliability of the business on its goods and services



Whether to grant the business credit on purchases by finding out the ability to pay off its debts



Existing shareholders must evaluate whether to change their investment amounts in the business.

Potential shareholders evaluate whether to invest in the business or not

*notes are applicable to Principles of Accounts, based on Singapore O/N level syllabus

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