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Who are the primary users of financial statements?

Primary users of the financial statements are considered existing and potential investors, creditors, and lenders. Primary users obtain financial statement information and allow them to understand the overall health of the company such as its net cash flow status etc. Such users make decisions related to purchasing or selling interest in these reporting entities. Other information can be provided about the company such as information related to management and the board of directors. This will give primary users a greater understanding of qualitative characteristic about the company. 

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  • What is included in a company’s financial statements?

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  • What can financial statements tell readers?

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