BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The recipients of the external reports include potential investors, lenders, and creditors who require the reports to evaluate the financial position of the company. The main external financial reports include the income statement, balance sheet, and statement of cash flows.

Detailed explanation-2: -External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

Detailed explanation-3: -Generally accepted accounting principles, as well as U.S. securities laws, provide for four general purpose external financial statements: the balance sheet, income statement, cash flow statement and equity statement.

Detailed explanation-4: -External Users. Typically called financial accounting, the record of a business’ financial history for use by external entities is used for many purposes. The external users of accounting information fall into six groups; each has different interests in the company and wants answers to unique questions.