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The users of private company financial statements do not have access to financial information beyond that available to the users of public company financial statements.
Private Company
A business entity owned by private individuals or entities and not publicly traded on a stock exchange.
Public Company
A company whose shares are traded freely on a stock exchange, making its financial records and activity reports publicly available.
Financial Statements
Financial statements are formal records of the financial activities and position of a business, person, or other entity, including the balance sheet, income statement, and statement of cash flows.
- Determine who the internal and external recipients of accounting information are.
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Learning Objectives
- Determine who the internal and external recipients of accounting information are.
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