Explain the different types of users of financial statements.

Financial Statement Concepts Discussion

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The new hires now have a better understanding of the different types of users of financial statements and source documents. This week, your manager has asked you to continue with your training by explaining financial statements. You want to see how much the new hires really understand when it comes to preparing and reviewing financials.

Using your textbook, the library, the Internet, or any other available materials, explain the different types of users of financial statements. The following questions must be answered in the report to receive full credit:

  • Define the accounting equation.
  • Define, explain, and give 1 example of each of these account types:
    • Assets
    • Liabilities
    • Owners’ equity
    • Revenue
    • Expenses
  • Discuss how much time you think you will need to spend each week for this accounting class. Do you have any concerns in completing the homework?

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