Question

Who are the external and internal stakeholders of a company? Why would stakeholders benefit from reading a company's Balance
Sheet?

Answer 1

Explanation:

The financial statements of an entity are not only prepared for internal users but also for external stakeholders. It is important to understand the needs of these stakeholders so that the financial statements can be prepared in accordance with those needs. Let us understand the crucial external users that matter.

Answer 2

Answer:

The financial statements of an entity are not only prepared for internal users but also for external stakeholders. It is so important to understandthe needs of these stakeholders that financial statements can be prepared in accorance with those needs.