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