Stuff i dont know econs

Main internal users of financial information

Managers (for planning, controlling, decision-making), Employees (job security, wage negotiations), Owners (profitability, performance)

Main external users of financial information

Investors (return on investment, financial health), Creditors (ability to repay debts), Government (tax, compliance), Community (impact on environment/society)

Information needed by internal users

Detailed operational data such as budgets, forecasts, cash flow, and performance measures.

Information needed by external users

Summarised reports such as financial statements, profit results, and solvency position.

Difference between debt and equity

Debt is borrowed funds that must be repaid (e.g. loans, bonds) with interest; Equity is funds invested by owners/shareholders involving ownership and potential dividends.

Accounts receivable

Amounts owed to a business by another business or individual because of purchasing inventory on credit.

Equity

The residual interest in a business's assets after deducting liabilities; represents owners' stake in the business.