Bus.
MATH
External Users KUMIKITA PA BA AKO? PAANO KO KAYA MAS
MAPAPALAKI ANG PROFIT KO? DAPAT BA AKO MAG
The external users are the secondary users of
BUSINESS LOAN?
accounting financial reports. They are the
following: they use financial information to know the profit
or income for the period, resources, or assets of
1. Potential and existing investors - they need
the business. Liabilities of the business are
information to help them decide whether they
needed by the owners. They also use financial
should invest or not in the business. Through past
information in considerations regarding additional
performances or operating results of the
investment, expanding the business, and
company, they would want to know potential
borrowing funds to support any expansion plans
returns on their investment.
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2. Creditors and potential creditors - assess the
credit worthiness and the capability of the PAANO KAYA MAPAPABABA ANG GASTOS SA
business to pay its obligation including the PRODUCTION? PAANO KAYA MAS MAPAPATAAS PA
related interests on maturity date ANG SALES?
. 3. Customers - assess the financial position of to know the income/earnings for the period,
their suppliers which is necessary for them to sales, available cash, and production cost are the
maintain a stable source of supply in the long reasons why the management needs the
term. They are interested to know whether the accounting information. They also analyze the
business will continue to honor its product organization's performance and position and take
warranties. appropriate measures to improve the company
results, sufficiency of cash to pay dividends to
4. Suppliers - use the financial statements of
stockholders as well as the pricing decisions.
their customers to determine whether the debts
owed to them will be paid when due or whether 3. EMPLOYEES
the customer has enough funds or resources to
pay the goods to be delivered or the services to PWEDE KAYA KAMI HUMINGI NG DAGDAG SAHOD?
be rendered. MAY IPAPASWELDO PA KAYA SA AMIN ANG
KOMPANYA?
5. Tax authorities - use financial reports to
determine the credibility of the tax returns filed for job security, they use financial information as
on behalf of the company. They are interested to factor to consider in staying employment or to
know if the business paid the correct amount of look for other employment opportunities.
taxes.
6. Regulatory bodies - want to ensure that the
company's disclosure of accounting information is
in accordance with the rules and regulations set
in order to protect the interest of the stakeholders
who rely on such information. Security and
Exchange Commission (SEC) and Bangko Sentral
ng Pilipinas (BSP) are those examples of these
regulatory bodies.
7. Public - use the financial information to know
how the business affects the economy possible
prospects for employment, and for educational
and research purposes.
INTERNAL USERS
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