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What are the two types of users of financial statements. How do they use the financial...

What are the two types of users of financial statements. How do they use the financial statements?

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Two types of users of financial statements are- External users and internal users

External users are not involved in operations of the company but has the financial interest.The external users has a direct as well as indirect financial interest so they use financial interest. External users includes owners, creditors, investors,government, employees, customers.

Internal Users refers to managers who use financial information in making decision related to company's operations.

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